Chapter 1—An Overview of Marketing

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CHAPTER 1—AN OVERVIEW OF MARKETING
TRUE/FALSE
1.MARKETING IS DEFINED AS PRODUCING, PROMOTING, AND SELLING PRODUCTS.
ANS: F
MARKETING MEANS MORE THAN JUST PRODUCING, PROMOTING, AND SELLING PRODUCTS. IT IS A
PHILOSOPHY THAT STRESSES CUSTOMER RELATIONSHIPS AS WELL AS BENEFITING THE
ORGANIZATION AND ITS STAKEHOLDERS.
PTS: 1
REF: 2
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
2. ACCORDING TO THE AMERICAN MARKETING ASSOCIATION, MARKETING IS THE ACTIVITY, SET OF
INSTITUTIONS, AND PROCESSES FOR CREATING, COMMUNICATING, DELIVERING, AND
EXCHANGING OFFERINGS THAT HAVE VALUE FOR CUSTOMERS, CLIENTS, PARTNERS, AND SOCIETY
AT LARGE.
ANS: T
PTS: 1
TOP: AACSB REFLECTIVE THINKING
MSC: BLOOMS LEVEL I KNOWLEDGE
REF: 3
OBJ: 01-1
KEY: CB&E MODEL STRATEGY
3. AN EXCHANGE CANNOT TAKE PLACE UNLESS EACH PARTY IN THE EXCHANGE HAS SOMETHING
THAT THE OTHER PARTY VALUES.
ANS: T
PTS: 1
REF: 3
OBJ: 01-1
TOP: AACSB REFLECTIVE THINKING
KEY: CB&E MODEL STRATEGY
MSC: BLOOMS LEVEL II COMPREHENSION
4. OTIS PLACES AN AD IN THE LOCAL NEWSPAPER STATING THAT HIS USED CHEVROLET IS FOR SALE
FOR $4000. UNFORTUNATELY, NO ONE PURCHASED OTIS’S USED CAR. THEREFORE, HE DID NOT
ENGAGE IN MARKETING.
ANS: F
MARKETING CAN OCCUR EVEN IF AN EXCHANGE DOES NOT OCCUR. OTIS ENGAGED IN
MARKETING BY ADVERTSING IN THE LOCAL NEWSPAPER, EVEN THOUGH NO ONE BOUGHT HIS
USED CAR.
PTS: 1
REF: 4
THINKING
KEY: CB&E MODEL RESEARCH
OBJ: 01-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
5. UNLIKE A PRODUCTION ORIENTATED FIRM, A FIRM EMBRACING A SALES ORIENTATION FOCUSES
ON CUSTOMER WANTS AND NEEDS SO IT CAN DEVELOP THE BEST PRODUCT AT THE LOWEST COST
THAT WILL REQUIRE VERY LITTLE SELLING EFFORT.
ANS: F
A SALES ORIENTATION IS BASED ON THE IDEAS THAT PEOPLE WILL BUY MORE GOODS AND
SERVICES IF AGGRESSIVE SALES TECHNIQUES ARE USED AND THAT HIGH SALES RESULT IN HIGH
PROFITS.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
6. THE MARKETING CONCEPT STATES THAT THE SOCIAL AND ECONOMIC JUSTIFICATION FOR AN
ORGANIZATION'S EXISTENCE IS THE SATISFACTION OF CUSTOMERS’ WANTS AND NEEDS WHILE
MEETING ORGANIZATIONAL OBJECTIVES.
ANS: T
PTS: 1
REF: 5
OBJ: 01-2
TOP: AACSB REFLECTIVE THINKING
KEY: CB&E MODEL CUSTOMER
MSC: BLOOMS LEVEL II COMPREHENSION
7. A MARKET ORIENTATION ASSUMES THAT SALES DEPEND ON AGGRESSIVE SALES TECHNIQUES.
ANS: F
MARKET ORIENTATION IS A PHILOSOPHY THAT ASSUMES THAT A SALE DEPENDS ON A
CUSTOMER’S DECISION TO PURCHASE A PRODUCT, NOT ON AN AGGRESSIVE SALES FORCE.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
8. THE FUNDAMENTAL PROBLEM WITH A SALES ORIENTATION IS A LACK OF UNDERSTANDING OF
CUSTOMERS’ NEEDS AND WANTS.
ANS: T
PTS: 1
TOP: AACSB REFLECTIVE THINKING
MSC: BLOOMS LEVEL I KNOWLEDGE
REF: 5
OBJ: 01-2
KEY: CB&E MODEL CUSTOMER
9. THE SOCIETAL MARKETING CONCEPT CONSIDERS SOCIETY'S LONG-TERM BEST INTERESTS ALONG
WITH THE SATISFACTION OF CUSTOMERS' WANTS AND NEEDS.
ANS: T
PTS: 1
REF: 6
OBJ: 01-2
TOP: AACSB REFLECTIVE THINKING
KEY: CB&E MODEL CUSTOMER
MSC: BLOOMS LEVEL II COMPREHENSION
10. CURRENT TRENDS INDICATE THAT MORE CUSTOMERS ARE BECOMING CONCERNED ABOUT THE
ENVIRONMENT EACH YEAR AND ARE TRYING TO BUY ENVIRONMENTALLY FRIENDLY PRODUCTS.
ANS: T
PTS: 1
TOP: AACSB REFLECTIVE THINKING
MSC: BLOOMS LEVEL I KNOWLEDGE
REF: 7
OBJ: 01-2
KEY: CB&E MODEL CUSTOMER
11. CUSTOMER VALUE IS THE RELATIONSHIP BETWEEN COMPANY PROFITS AND COMPANY COSTS.
ANS: F
CUSTOMER VALUE IS THE RELATIONSHIP BETWEEN BENEFITS AND THE SACRIFICE NECESSARY TO
OBTAIN THOSE BENEFITS.
PTS: 1
REF: 9
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
12. THE WAY TO ACHIEVE CUSTOMER SATISFACTION AND VALUE IS TO OFFER THE LOWEST PRICE.
ANS: F
MARKETERS INTERESTED IN CUSTOMER VALUE OFFER REALISTIC PRICES AND TRY TO ACHIEVE
CUSTOMER SATISFACTION AND VALUE BY ENSURING CUSTOMER EXPECTATIONS ARE MET OR
EXCEEDED.
PTS: 1
REF: 10
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL VI EVALUATION
13. SALES-ORIENTED FIRMS TEND TO FOCUS ON LONG-TERM RELATIONSHIPS, WHEREAS MARKETORIENTED FIRMS FOCUS PRIMARILY ON SHORT-TERM RELATIONSHIPS.
ANS: F
THE REVERSE IS TRUE.
PTS: 1
REF: 10
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL VI EVALUATION
14. 3D SYSTEMS IS A COMPANY THAT USES COMPUTERS TO GENERATE NEW PRODUCT PROTOTYPES.
IT HAS GENERATED LOYAL BUSINESS CLIENTS BY PROVIDING THE BEST CUSTOMER SUPPORT IN
THE INDUSTRY. THE COMPANY ALSO PROVIDES DIRECT SALES CONSULTATIONS THAT GIVES ITS
SALESPEOPLE INTIMATE KNOWLEDGE ABOUT WHAT EXACTLY ITS CUSTOMERS WANT. THIS
PARTNERSHIP BETWEEN 3D SYSTEMS AND ITS CUSTOMERS ENTAILS RELATIONSHIP MARKETING.
ANS: T
PTS: 1
REF: 10-11
OBJ: 01-3
TOP: AACSB REFLECTIVE THINKING
KEY: CB&E MODEL CUSTOMER
MSC: BLOOMS LEVEL III APPLICATION
15. ONLY A FIRM'S SALESPEOPLE NEED TO BE CUSTOMER-ORIENTED.
ANS: F
ALL EMPLOYEES NEED TO BE CUSTOMER-ORIENTED BECAUSE IN THE CUSTOMER'S EYES, THE
EMPLOYEE (REGARDLESS OF THE POSITION HELD IN THE ORGANIZATION) IS THE FIRM AND MAY
BE THE ONLY FIRM REPRESENTATIVE THE CUSTOMER EVER SEES.
PTS: 1
REF: 11
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL VI EVALUATION
16. RETAILERS WHO GIVE THEIR SALES CLERKS THE AUTHORITY TO HANDLE CUSTOMER COMPLAINTS
WITHOUT HAVING TO GET APPROVAL FROM A SUPERVISOR ARE USING EMPOWERMENT.
ANS: T
PTS: 1
REF: 12
OBJ: 01-3
TOP: AACSB REFLECTIVE THINKING
KEY: CB&E MODEL CUSTOMER
MSC: BLOOMS LEVEL III APPLICATION
17. IN THE EARLY 1920S, FORD PROMISED ITS CUSTOMERS ANY COLOR VEHICLE THEY WANTED AS
LONG AS IT WAS BLACK. FORD'S MANAGEMENT ASSUMED ANYONE BUYING A CAR WOULD
ACCEPT THE COLOR BLACK, SO IT MADE PRODUCTS AFFORDABLE BY OFFERING ONLY ONE
VARIETY IN LARGE QUANTITIES. FORD IS AN EXAMPLE OF A MARKET-ORIENTED FIRM.
ANS: F
A MARKET-ORIENTED ORGANIZATION RECOGNIZES THAT DIFFERENT CUSTOMERS GROUPS WANT
DIFFERENT FEATURES OR BENEFITS.
PTS: 1
REF: 14
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
18. THE ULTIMATE GOAL OF MOST MARKET-ORIENTED FIRMS IS PROFITABILITY THAT RESULTS FROM
SATISFYING THE WANTS AND NEEDS OF ITS CONSUMERS.
ANS: T
PTS: 1
REF: 15
OBJ: 01-3
TOP: AACSB REFLECTIVE THINKING
KEY: CB&E MODEL CUSTOMER
MSC: BLOOMS LEVEL VI EVALUATION
19. SALES-ORIENTED FIRMS USUALLY RELY MORE HEAVILY ON PROMOTION ALONE THAN DO
MARKET-ORIENTED FIRMS.
ANS: T
PTS: 1
REF: 15
OBJ: 01-3
TOP: AACSB REFLECTIVE THINKING
KEY: CB&E MODEL STRATEGY
MSC: BLOOMS LEVEL II COMPREHENSION
20. SALESPEOPLE WHO WORK FOR MARKET-ORIENTED ORGANIZATIONS ARE GENERALLY PERCEIVED
BY THEIR CUSTOMERS AS PROBLEM SOLVERS AND IMPORTANT LINKS TO SUPPLY SOURCES AND
NEW PRODUCTS.
ANS: T
PTS: 1
REF: 15
OBJ: 01-3
TOP: AACSB REFLECTIVE THINKING
KEY: CB&E MODEL CUSTOMER
MSC: BLOOMS LEVEL II COMPREHENSION
21. MARKETING IS IMPORTANT TO BUSINESS, SO MARKETING SHOULD BE PART OF THE JOB OF
EVERYONE IN THE ORGANIZATION, NOT JUST THOSE IN MARKETING.
ANS: T
PTS: 1
REF: 16
OBJ: 01-4
TOP: AACSB REFLECTIVE THINKING
KEY: CB&E MODEL STRATEGY
MSC: BLOOMS LEVEL VI EVALUATION
22. THE FUNDAMENTAL OBJECTIVES OF MOST BUSINESSES ARE SURVIVAL, PROFITS, AND GROWTH.
ANS: T
PTS: 1
TOP: AACSB REFLECTIVE THINKING
MSC: BLOOMS LEVEL I KNOWLEDGE
REF: 16
OBJ: 01-4
KEY: CB&E MODEL STRATEGY
23. CAREER OPPORTUNITIES IN MARKETING EXIST ONLY IN FOR-PROFIT ORGANIZATIONS.
ANS: F
MARKETING CAREER OPPORTUNITIES EXIST IN A VARIETY OF NON-BUSINESS ORGANIZATIONS,
INCLUDING HOSPITALS, MUSEUMS, UNIVERSITIES, THE ARMED FORCES, AND VARIOUS
GOVERNMENT AND SOCIAL SERVICE AGENCIES.
PTS: 1
REF: 16
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-4
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL VI EVALUATION
MULTIPLE CHOICE
1. ONE FACET OF MARKETING IS THAT IT IS:
A.
AN APPROACH THAT FOCUSES ON
MAXIMIZING SALES
B.
A SHORT-TERM ORIENTED APPROACH TO
PROFIT MAXIMIZATION
C.
AN APPROACH THAT REQUIRES DIVERSITY
D.
A PHILOSOPHY THAT STRESSES CUSTOMER
SATISFACTION
E.
INDEPENDENT OF VALUE CREATION
ANS: D
MARKETING HAS TWO FACETS. FIRST, IT IS A PHILOSOPHY, AN ATTITUDE, A PERSPECTIVE, OR A
MANAGEMENT ORIENTATION THAT STRESSES CUSTOMER SATISFACTION. SECOND, MARKETING IS
ACTIVITIES AND PROCESSES USED TO IMPLEMENT THIS PHILOSOPHY.
PTS: 1
REF: 2
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
2. A BUSINESS IS CONCERNED WITH MANY DAY-TO-DAY ACTIVITIES. SOME OF THE MOST
IMPORTANT OF THESE ACTIVITIES ARE THE PLANNING AND DEVELOPMENT OF A PRODUCT, ITS
PRICING POLICY, AND THE DISTRIBUTION STRATEGY. THESE ACTIVITIES ARE ALL A PART OF:
A.
A CONTROL SYSTEM
B.
MARKETING
C.
ACCOUNTING
D.
PRODUCTION
E.
HUMAN RESOURCES
ANS: B
THIS DESCRIPTION CONTAINS THREE OF THE FOUR MAIN ACTIVITIES INCLUDED IN THE
MARKETING FUNCTION. THE FOURTH MAIN ACTIVITY IS COMMUNICATING VALUE.
PTS: 1
REF: 3
OBJ: 01-1
TOP: AACSB REFLECTIVE
THINKING
KEY: CB&E MODEL PRICING | CB&E MODEL PRODUCT | CB&E MODEL DISTRIBUTION
MSC: BLOOMS LEVEL IV ANALYSIS
3. WHICH OF THE FOLLOWING WOULD BE CONSIDERED A STAKEHOLDER OF SOUTHWEST AIRLINES?
A.
SOUTHWEST AIRLINES EMPLOYEES
B.
SOUTHWEST AIRLINES STOCKHOLDERS
C.
COMPANIES THAT SUPPLY PARTS TO
SOUTHWEST AIRLINES
D.
INDIVIDUALS WHO FLY ON SOUTHWEST
AIRLINES
E.
ALL OF THESE
ANS: E
MARKETING ENTAILS AN UNDERSTANDING THAT ORGANIZATIONS HAVE MANY CONNECTED
STAKEHOLDER “PARTNERS,” INCLUDING EMPLOYEES, SUPPLIERS, STOCKHOLDERS,
DISTRIBUTORS, AND SOCIETY AT LARGE.
PTS: 1
REF: 3
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
4. THE AMERICAN MARKETING ASSOCIATION'S DEFINITION OF MARKETING:
A.
IS LIMITED TO PROMOTIONAL ACTIVITIES
B.
FOCUSES ON THE VALUE OF EMPOWERMENT,
TEAMWORK, AND CUSTOMER VALUE
C.
SHOWS HOW MARKETING BENEFITS THE
MARKETER
D.
RELIES ON THE SYNERGY CREATED BY
EXCHANGE
E.
INCLUDES CREATING, COMMUNICATING,
DELIVERING AND EXCHANGING OFFERINGS
THAT HAVE VALUE FOR CUSTOMERS, CLIENTS,
PARTNERS, AND SOCIETY AT LARGE.
ANS: E
ACCORDING TO THE AMERICAN MARKETING ASSOCIATION, MARKETING IS THE ACTIVITY, SET OF
INSTITUTIONS, AND PROCESSES FOR CREATING, COMMUNICATING, DELIVERING, AND
EXCHANGING OFFERINGS THAT HAVE VALUE FOR CUSTOMERS, CLIENTS, PARTNERS, AND SOCIETY
AT LARGE.
PTS: 1
REF: 3
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
5. WHICH OF THE FOLLOWING OCCURS WHEN PEOPLE GIVE UP SOMETHING IN ORDER TO RECEIVE
SOMETHING THAT THEY WOULD RATHER HAVE?
A.
EXCHANGE
B.
SYNERGY
C.
TRANSFORMATION
D.
LEVERAGING
E.
RECIPROCITY
ANS: A
EXCHANGE IS PEOPLE GIVING UP SOMETHING TO RECEIVE SOMETHING THEY WOULD RATHER
HAVE.
PTS: 1
REF: 3
THINKING
KEY: CB&E MODEL PRODUCT
OBJ: 01-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
6. ALL OF THE FOLLOWING ARE NECESSARY FOR EXCHANGE TO OCCUR EXCEPT:
A.
EACH PARTY IS CAPABLE OF COMMUNICATION
AND DELIVERY
B.
EACH PARTY SIGNS A CONTRACT BEFORE
EXCHANGE OCCURS
C.
EACH PARTY BELIEVES IT IS APPROPRIATE OR
DESIRABLE TO DEAL WITH THE OTHERS
D.
EACH PARTY IS FREE TO ACCEPT OR REJECT
THE EXCHANGE OFFER
E.
EACH PARTY MUST HAVE SOMETHING THE
OTHER PARTY CONSIDERS TO BE VALUABLE
ANS: B
EXCHANGE CAN OCCUR WITHOUT A LEGAL CONTRACT.
PTS: 1
REF: 3-4
THINKING
KEY: CB&E MODEL CUSTOMER
7. FOR AN EXCHANGE TO TAKE PLACE:
A.
OBJ: 01-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL VI EVALUATION
THERE MUST BE AT LEAST TWO PARTIES
INVOLVED
B.
MONEY MUST BE USED IN THE TRANSACTION
C.
EACH PARTY MUST FEEL OBLIGATED TO
ACCEPT THE OFFER
D.
AT LEAST ONE PARTY MUST HAVE SOMETHING
OF VALUE THAT THE OTHER PARTY DESIRES
E.
NEITHER PARTY MUST COMMUNICATE WITH
THE OTHER
ANS: A
FOR EXCHANGE TO OCCUR, THERE MUST BE AT LEAST TWO PARTIES, EACH PARTY HAS
SOMETHING THAT MIGHT BE OF VALUE TO THE OTHER PARTY, EACH PARTY IS CAPABLE OF
COMMUNICATION AND DELIVERY, EACH PARTY IS FREE TO ACCEPT OR REJECT THE EXCHANGE
OFFER, AND EACH PARTY BELIEVES IT IS APPROPRIATE OR DESIRABLE TO DEAL WITH THE OTHER
PARTY.
PTS: 1
REF: 3
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
8. THE CONCEPT OF EXCHANGE IS IMPORTANT TO MARKETING BECAUSE:
A.
IF ALL THE CONDITIONS FOR AN EXCHANGE
ARE IN PLACE, THEN THE EXCHANGE WILL BE
COMPLETED
B.
EXCHANGE PROVIDES MONEY TO MARKETERS
C.
MARKETING ACTIVITIES HELP TO CREATE
EXCHANGE
D.
MARKETING ACTIVITIES ARE A REQUIREMENT
FOR EXCHANGE TO TAKE PLACE
E.
MONEY IS THE ONLY MEDIUM OF EXCHANGE
FOR BUSINESS MARKETERS
ANS: C
MARKETING ACTIVITIES HELP THE EXCHANGE TO TAKE PLACE, BUT MARKETING CAN OCCUR
WITHOUT AN EXCHANGE.
PTS: 1
REF: 3-4
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL VI EVALUATION
9. BOB COLLECTS BASEBALL CARDS AND DECIDES TO SELL A FEW OF THEM ON EBAY. SOME OF THE
CARDS HE WANTS TO SELL ARE RARE AND VERY VALUABLE. WHAT CONDITION IS NECESSARY
FOR AN EXCHANGE TO OCCUR BETWEEN BARRY AND A BUYER?
A.
HIS CARD SHOULD HAVE A CERTIFICATE OF
AUTHENTICITY.
B.
THE OPENING BID MUST BE LOWER THAN
OTHER CARDS BEING SOLD ON THE SITE.
C.
BUYERS MUST PROVIDE PAYMENT BEFORE
THE ITEM IS SHIPPED.
D.
DELIVERY MUST TAKE PLACE WITHIN 2 DAYS
OF THE PURCHASE.
E.
POTENTIAL BUYERS MUST BE ABLE TO SEE
THE CARD AND UNDERSTAND ITS QUALITIES.
ANS: E
FOR AN EXCHANGE TO TAKE PLACE, EACH PARTY MUST HAVE SOMETHING THE OTHER VALUES;
THE PARTIES MUST BE ABLE TO COMMUNICATE; EACH PARTY MUST BELIEVE THAT IT IS
APPROPRIATE TO DEAL WITH THE OTHER; AND EACH PARTY MUST BE FREE TO ACCEPT OR REJECT
THE EXCHANGE OFFER.
PTS: 1
REF: 3-4
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
10. A PROBLEM FACING THE TIMBER INDUSTRY IS THE ABSENCE OF ANY EFFECTIVE WAY TO PROVE
THAT RAIN FOREST TIMBER WAS LEGALLY HARVESTED. IN PLACES LIKE INDONESIA AS MUCH AS
80 PERCENT OF TIMBER AVAILABLE FOR SALE WAS ILLEGALLY CUT. COMPANIES LIKE THE HOME
DEPOT DO NOT WANT TO SELL TIMBER FROM ILLEGALLY LOGGED FORESTS EVEN THOUGH THE
DEMAND IS GREAT FOR TIMBER FROM RAIN FORESTS. WHICH OF THE FOLLOWING CONDITIONS
REQUIRED FOR AN EXCHANGE TO OCCUR IS MISSING WHEN A COMPANY TRIES TO SELL ILLEGALLY
ACQUIRED LOGS TO THE HOME DEPOT?
A.
B.
C.
D.
E.
THERE ARE MORE THAN TWO PARTIES
INVOLVED.
EACH PARTY HAS SOMETHING OF VALUE TO
BRING TO THE EXCHANGE.
ONE PARTY IS FREE TO ACCEPT THE
EXCHANGE OFFER.
EACH PARTY BELIEVES IT IS APPROPRIATE TO
DEAL WITH THE OTHER PARTY.
NOBODY SEES THE EXCHANGE AS PRODUCING
VALUE.
ANS: D
FOR AN EXCHANGE TO OCCUR, TWO OR MORE PARTIES MUST BE INVOLVED. BOTH PARTIES ARE
FREE TO ACCEPT OR REJECT THE EXCHANGE. IF THE HOME DEPOT BELIEVES THE TIMBER WAS
ILLEGALLY GOTTEN, THEN IT WILL NOT WANT TO DEAL WITH THE LOGGERS.
PTS: 1
REF: 4
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
11. EVERY CUP OF DANNON YOGURT CONTAINS A LETTER UNDER THE LID SEAL. CUSTOMERS WHO
COLLECT LIDS AND SPELL CERTAIN WORDS WIN A PRIZE IF THEY SEND THE LETTERS AND THE
OFFICIAL ORDER FORM BACK TO DANNON. WITHIN 90 DAYS, THESE CUSTOMERS WILL RECEIVE
THE PRIZE OF THEIR CHOICE. A(N) _____ WILL OCCUR WHEN A CUSTOMER MAILS IN HIS OR HER
LID SEALS FOR A PRIZE.
A.
SYNERGY
B.
SUBLIMATION
C.
EXCHANGE
D.
ENTROPY
E.
RECIPROCITY
ANS: C
FOR AN EXCHANGE TO OCCUR, TWO OR MORE PARTIES MUST BE INVOLVED. BOTH PARTIES ARE
FREE TO ACCEPT OR REJECT THE EXCHANGE. FURTHERMORE, EACH PARTY MUST HAVE
SOMETHING THAT IS OF VALUE TO THE OTHER PARTY. EACH PARTY IS CAPABLE OF
COMMUNICATION AND DELIVERY AND BELIEVES IT IS DESIRABLE TO DO SO. IN THIS CASE, THE
VALUE FOR DANNON IS CUSTOMER LOYALTY. THE VALUE FOR THE CUSTOMER IS THE YOGURT
AND THE PRIZE.
PTS: 1
REF: 4
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
12. ALL OF THE FOLLOWING ARE MARKETING MANAGEMENT PHILOSOPHIES EXCEPT:
A.
SALES ORIENTATION
B.
SOCIETAL MARKETING ORIENTATION
C.
MARKET ORIENTATION
D.
PROFITABILITY ORIENTATION
E.
PRODUCTION ORIENTATION
ANS: D
THE FOUR MARKETING PHILOSOPHIES ARE COMMONLY REFERRED TO AS PRODUCTION, SALES,
MARKET, AND SOCIETAL MARKETING ORIENTATIONS.
PTS: 1
REF: 4
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL VI EVALUATION
13. INDONESIAN LOGGING COMPANIES HARVEST THE RAIN FORESTS FOR TIMBER AND ASSUME THAT
A MARKET EXISTS FOR THEIR PRODUCTS. THE TYPICAL INDONESIAN LOGGING COMPANY HAS
A(N) _____ ORIENTATION.
A.
EXCHANGE
B.
PRODUCT
C.
PRODUCTION
D.
SALES
E.
ENVIRONMENTAL
ANS: C
A PRODUCTION ORIENTATION IS A PHILOSOPHY THAT FOCUSES ON THE INTERNAL CAPABILITIES
OF THE FIRM RATHER THAN ON THE DESIRES AND NEEDS OF THE MARKETPLACE.
PTS: 1
REF: 4
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
14. FIRMS WITH A _____ ORIENTATION FOCUS ON THE INTERNAL CAPABILITIES OF THE FIRM RATHER
THAN ON THE DESIRES AND NEEDS OF THE MARKETPLACE.
A.
SALES
B.
PRODUCTION
C.
MARKET
D.
CUSTOMER
E.
CUSTOMER-BENEFIT
ANS: B
A PRODUCTION ORIENTATION IS A PHILOSOPHY THAT FOCUSES ON THE INTERNAL CAPABILITIES
OF THE FIRM RATHER THAN ON THE DESIRES AND NEEDS OF THE MARKETPLACE.
PTS: 1
REF: 4
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
15. A COMPANY THAT SETS ITS GOALS AND STRATEGIES BASED ON WHAT ITS CURRENT EQUIPMENT
CAN PRODUCE, WHAT PRODUCTS ENGINEERING CAN DESIGN, AND WHAT THE COMPANY ITSELF
CAN DO BEST, HAS A(N) _____ ORIENTATION.
A.
MARKETPLACE
B.
SALES
C.
MARKET
D.
EXCHANGE
E.
PRODUCTION
ANS: E
A PRODUCTION ORIENTATION FOCUSES ON THE INTERNAL CAPABILITIES OF THE FIRM.
PTS: 1
REF: 4
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
16. RESEARCHERS AT PPG INDUSTRIES SPENT CONSIDERABLE TIME, EFFORT, AND MONEY
DEVELOPING A BLUISH WINDSHIELD THAT WOULD LET IN FILTERED SUNLIGHT BUT BLOCK OUT
THE HEAT. LITTLE MARKET RESEARCH WAS DONE, BUT THE SCIENTISTS WERE CONVINCED THIS
NEW PRODUCT WOULD BE SIGNIFICANTLY BETTER THAN EXISTING WINDSHIELDS EVEN THOUGH
IT WAS MORE EXPENSIVE AND OF A DIFFERENT COLOR THAN THE CURRENT MODELS ON THE
MARKET. THIS SCENARIO SUGGESTS PPG MOST LIKELY HAS A(N) _____ ORIENTATION.
A.
EXCHANGE
B.
PRODUCTION
C.
SALES
D.
PROMOTION
E.
CUSTOMER
ANS: B
A PRODUCTION ORIENTATION IS A PHILOSOPHY THAT FOCUSES ON THE INTERNAL CAPABILITIES
OF THE FIRM RATHER THAN ON THE DESIRES AND NEEDS OF THE MARKETPLACE.
PTS: 1
REF: 4
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
17. A NEWSPAPER AD FOR A HOSPITAL THAT STATES, “WE HAVE THE MOST MODERN DELIVERY
ROOMS AND STATE-OF-THE ART MEDICAL EQUIPMENT,” IS AN INDICATION OF WHICH MARKETING
MANAGEMENT PHILOSOPHY?
A.
SALES ORIENTATION
B.
CUSTOMER ORIENTATION
C.
MARKET ORIENTATION
D.
SOCIETAL MARKETING ORIENTATION
E.
PRODUCTION ORIENTATION
ANS: E
A PRODUCTION ORIENTATION FOCUSES ON THE INTERNAL CAPABILITIES OF THE FIRM.
PTS: 1
REF: 4
OBJ: 01-2
THINKING
KEY: CB&E MODEL STRATEGY | CB&E MODEL PROMOTION
MSC: BLOOMS LEVEL III APPLICATION
TOP: AACSB REFLECTIVE
18. A FIRM WITH A PRODUCTION ORIENTATION IS MORE LIKELY TO SURVIVE IF:
A.
THERE ARE MANY SMALL COMPETITORS IN
THE MARKETPLACE
B.
DEMAND FOR THE PRODUCT IT PRODUCES
EXCEEDS SUPPLY
C.
THE NEEDS OF THE MARKETPLACE ARE
CONSTANTLY SHIFTING
D.
SUPPLY FOR THE PRODUCT IT PRODUCES
EXCEEDS DEMAND
E.
ANY OF THESE CONDITIONS EXIST
ANS: B
THE PRODUCTION ORIENTATION CAN SURVIVE IN THE SHORT TERM UNDER A VARIETY OF
CONDITIONS; HOWEVER, IF MARKET NEEDS CHANGE, LONG-TERM SURVIVAL IS DIFFICULT.
PTS: 1
REF: 4
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
19. A FIRM THAT ADOPTS A(N) _____ ORIENTATION TO MARKETING WILL FAIL TO CONSIDER
WHETHER WHAT THE FIRM PRODUCES MOST EFFICIENTLY ALSO MEETS THE NEEDS OF THE
MARKETPLACE.
A.
CUSTOMER
B.
EXCHANGE
C.
PRODUCT
D.
MARKET
E.
PRODUCTION
ANS: E
THE PRODUCTION ORIENTATION FORCES A COMPANY TO BUILD WHATEVER IT BUILDS BEST, THAT
IS, WHATEVER IT HAS THE EXPERIENCE AND EXPERTISE IN DOING.
PTS: 1
REF: 4
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
20. TOYOTA FOUND THAT CONSUMERS WANTED CARS TO LAST LONGER AND BE MORE
ENVIRONMENTALLY FRIENDLY. GM, HOWEVER, ENJOYED BEING THE TOP U.S. CAR PRODUCER,
AND FOCUSED MORE ON HOW MANY CARS AND TRUCKS IT COULD MANUFACTURE AND NOT ON
WHAT CUSTOMERS WANTED FROM A VEHICLE. GM HAD MORE OF A _____ ORIENTATION.
A.
SALES
B.
PRODUCTION
C.
MARKET
D.
PRODUCT
E.
CUSTOMER
ANS: B
THE PRODUCTION ORIENTATION FORCES A COMPANY TO BUILD WHATEVER IT BUILDS BEST, THAT
IS, WHATEVER IT HAS THE EXPERIENCE AND EXPERTISE IN DOING.
PTS: 1
REF: 4
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
21. THE _____ ORIENTATION ASSUMES PEOPLE WILL BUY MORE IF AGGRESSIVE SELLING TECHNIQUES
ARE USED.
A.
MARKET
B.
SALES
C.
CUSTOMER
D.
PRODUCTION
E.
EXCHANGE
ANS: B
THE SALES ORIENTATION ASSUMES AGGRESSIVE SELLING IS WHAT IS NEEDED TO INCREASE
DEMAND.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
22. MIMI COUTURIER IS A DESIGN COMPANY THAT SPECIALIZES IN FORMALWEAR FOR WOMEN. THE
COMPANY IS KNOWN FOR CHALLENGING FASHION MORES. THE COMPANY'S FASHION DESIGNERS
USE COMPUTER-ASSISTED DESIGN SOFTWARE TO CREATE WHAT IT THINKS WOMEN SHOULD
WEAR. THE COMPANY REGULARLY HIRES INDUSTRY EXPERTS TO EXAMINE ITS FACTORIES TO
FIND WASTE AND INEFFICIENCIES THAT CAN BE ELIMINATED. THE COMPANY HAS EXPANDED THE
NUMBER OF PRODUCTS IT OFFERS FOR SALE MANY TIMES. HOWEVER, FOR THE LAST TWO YEARS
MIMI COUTURIER HAS LOST MONEY, AND IT HAS HAD TO LAY OFF SOME OF ITS WORK FORCE. TO
AVOID THIS OCCURRENCE IN THE FUTURE, MIMI COUTURIER SHOULD:
A.
HIRE MORE RETAIL EFFICIENCY EXPERTS TO
TRACE DOWN ANY PRODUCTION PROBLEMS
B.
INCREASE ITS SALES FORCE TO FIND MORE
POTENTIAL CUSTOMERS FOR THE FIRM
C.
HAVE SOMEONE STUDY ITS TARGET MARKET
TO SEE WHAT NEEDS AND WANTS SHOULD BE
MET BY MIMI COUTURIER
D.
CUT PRICES SO THAT ITS PRICES WILL BE AT
LEAST 10 PERCENT BELOW THOSE OF ITS
COMPETITORS
E.
DESIGN MORE SOPHISTICATED PRODUCTS
THAT USE THE LATEST COMPUTER-AIDED
TECHNIQUES
ANS: C
MIMI COUTURIER HAS BEEN PRODUCTION-ORIENTED. IT SHOULD DEVELOP A MARKET
ORIENTATION, WHICH MEANS THE FIRM WILL PRODUCE ONLY THOSE ITEMS NEEDED BY ITS
TARGET MARKET.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III ANALYSIS
23. WHICH MARKETING MANAGEMENT PHILOSOPHY IS OFTEN ADOPTED BY ORGANIZATIONS THAT
SELL UNSOUGHT PRODUCTS SUCH AS LIFE INSURANCE, RETIREMENT PLANS, AND PRE-PLANNED
FUNERAL SERVICES?
A.
SALES ORIENTATION
B.
PRODUCTION ORIENTATION
C.
D.
E.
MARKETING ORIENTATION
PRODUCT ORIENTATION
CUSTOMER ORIENTATION
ANS: A
AGGRESSIVE SELLING IS SOMETIMES USED BY COMPANIES THAT SELL PRODUCTS THEIR
CUSTOMERS DO NOT WANT TO BUY.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL IV ANALYSIS
24. WHICH MARKETING ORIENTATION ASSUMES PEOPLE WILL BUY MORE GOODS AND SERVICES IF
AGGRESSIVE MARKETING TECHNIQUES ARE USED?
A.
SALES
B.
PRODUCTION
C.
MARKET
D.
CUSTOMER
E.
MARKETPLACE
ANS: A
A SALES ORIENTATION IS BASED ON THE IDEAS THAT PEOPLE WILL BUY MORE GOODS AND
SERVICES IF AGGRESSIVE SALES TECHNIQUES ARE USED AND THAT HIGH SALES RESULT IN HIGH
PROFITS.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
25. STORYBLOX CREATES AND MARKETS HANDMADE WOODEN TOYS, WHICH IT SELLS TO RETAILERS
IN THE MIDWEST. THE COMPANY’S MANAGEMENT BELIEVES ITS RETAIL CUSTOMERS WILL STOCK
MORE TOYS IF ITS SALESPEOPLE USE AGGRESSIVE MARKETING TECHNIQUES, SO THE COMPANY
PROVIDES STRONG INCENTIVES FOR SALESPEOPLE AND PROMOTIONAL ALLOWANCES TO
RESELLERS TO GET DISTRIBUTION FOR ITS TOYS. IN OTHER WORDS, THE COMPANY HAS A _____
ORIENTATION.
A.
PROMOTION
B.
PRODUCTION
C.
SALES
D.
MARKET
E.
CUSTOMER
ANS: C
THE SALES ORIENTATION ASSUMES AGGRESSIVE SALES TECHNIQUES WILL SELL MORE PRODUCT,
REGARDLESS OF CUSTOMER DESIRES AND NEEDS.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
26. IF A COMPANY USES A SALES ORIENTATION, CONSUMER COMPLAINTS WOULD MOST LIKELY
RESULT IN:
A.
A MODIFICATION OF THE SALES
PRESENTATION
B.
PRODUCT REINVENTION
C.
CONTINUOUS MARKET RESEARCH
D.
PHILANTHROPY
E.
ATTEMPTS TO CUT PRODUCTION COSTS
ANS: A
THE SALES ORIENTATION RELIES ON AGGRESSIVE SALES TECHNIQUES TO FUEL BUSINESS.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL IV ANALYSIS
27. FUJIFILM COMPUTER PRODUCTS HAS IMPROVED THE EFFICIENCY AND PRODUCTIVITY OF ITS
PLANT, WHICH MANUFACTURES PRINTING TECHNOLOGY. FOR THE NEW FISCAL YEAR, THE
COMPANY PROJECTS A PRODUCTION INCREASE OF 25 PERCENT. IT HAS INSTRUCTED ITS SALES
FORCE TO AGGRESSIVELY DISTRIBUTE AND PROMOTE ITS PRINTERS. THE CEO IS SURE THE
MARKET WILL ABSORB MORE PRODUCT IF THE SALES FORCE IS DETERMINED AND ASSERTIVE.
FUJIFILM APPEARS TO HAVE A _____ ORIENTATION.
A.
MARKET
B.
PRODUCTION
C.
SALES
D.
CUSTOMER
E.
MARKETPLACE
ANS: C
A SALES ORIENTATION IS BASED ON THE BELIEF THAT PEOPLE WILL BUY MORE GOODS AND
SERVICES IF AGGRESSIVE SALES TECHNIQUES ARE USED.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
28. WHICH MARKETING MANAGEMENT PHILOSOPHY ASSUMES THAT A SALE DOES NOT DEPEND ON
AN AGGRESSIVE SALES FORCE BUT RATHER ON A CUSTOMER’S DECISION TO PURCHASE A
PRODUCT?
A.
SALES ORIENTATION
B.
PRODUCTION ORIENTATION
C.
PRODUCT ORIENTATION
D.
MARKET ORIENTATION
E.
EXCHANGE ORIENTATION
ANS: D
A MARKET ORIENTATION STATES THAT THE SOCIAL AND ECONOMIC JUSTIFICATION FOR AN
ORGANIZATION’S EXISTENCE IS THE SATISFACTION OF CUSTOMER WANTS AND NEEDS WHILE
MEETING ORGANIZATIONAL OBJECTIVES.
PTS: 1
THINKING
REF: 5
OBJ: 01-2
TOP: AACSB REFLECTIVE
KEY: CB&E MODEL STRATEGY
MSC: BLOOMS LEVEL II COMPREHENSION
29. BEST BUY HAS BECOME THE NATION'S LARGEST SPECIALTY RETAILER BY FOCUSING ON THE
CUSTOMER'S NEEDS AND WANTS. THIS PHILOSOPHY IS AT THE HEART OF A(N) _____
ORIENTATION.
A.
SALES
B.
MARKET
C.
RETAIL
D.
PRODUCTION
E.
EXCHANGE
ANS: B
A MARKET-ORIENTED PHILOSOPHY IS BASED ON THE CONSUMER'S WANTS AND NEEDS, AND THE
ORGANIZATION WILL FOCUS ITS ACTIVITIES ON SATISFYING THESE CUSTOMERS BY LISTENING TO
THEM AND REVISING STRATEGIES AS NECESSARY.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
30. AT WWW.MYSTARBUCKSIDEA.COM CUSTOMERS ARE ENCOURAGED TO SHARE THEIR IDEAS AND
THOUGHTS ABOUT HOW STARBUCKS CAN BETTER SERVE THEIR CUSTOMERS. STARBUCKS
CUSTOMERS TOLD MANAGEMENT THAT THEY WANTED TO BE RECOGNIZED FOR CHOOSING
STARBUCKS COFFEE. SO STARBUCKS INSTITUTED THE STARBUCKS REWARD PROGRAM WITH
MONEY SAVING BENEFITS TO THEIR STARBUCK CARD-HOLDERS. STARBUCKS IS AN EXAMPLE OF
A COMPANY WITH A _____-ORIENTED PHILOSOPHY.
A.
TRANSACTIONAL
B.
SALES
C.
PRODUCTION
D.
SOCIETAL MARKETING
E.
MARKET
ANS: E
A MARKET-ORIENTED PHILOSOPHY IS BASED ON CONSUMERS’ WANTS AND NEEDS, AND THE
ORGANIZATION WILL FOCUS ITS ACTIVITIES ON SATISFYING THESE CUSTOMERS BY LISTENING TO
THEM AND REVISING STRATEGIES AS NECESSARY.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL PROMOTION
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
31. COMPANIES THAT RELY ON THE MARKETING CONCEPT AND THAT HAVE IMPLEMENTED A MARKET
ORIENTATION STRATEGY RECOGNIZE THAT:
A.
PRICE IS THE MOST IMPORTANT VARIABLE FOR
CUSTOMERS
B.
SALES DEPEND PREDOMINANTLY ON AN
AGGRESSIVE SALES FORCE
C.
WHAT THE CUSTOMER THINKS HE OR SHE IS
BUYING IS WHAT IS IMPORTANT
D.
A COMPANY HAS TO APPLY SCIENTIFIC
MANAGEMENT TECHNIQUES TO SURVIVE
E.
SELLING AND MARKETING ARE ESSENTIALLY
THE SAME THING
ANS: C
THE PERCEIVED PRODUCT AND PERCEIVED VALUE ARE WHAT THE CUSTOMER IS BUYING, AND
THE MARKETING CONCEPT AND MARKET ORIENTATION HAVE ENDEAVORED TO UNDERSTAND
THOSE PERCEPTIONS.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL CUSTOMER
32. THE MARKETING CONCEPT INVOLVES:
A.
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
FOCUSING ON CUSTOMERS' WANTS AND
NEEDS SO THAT THE ORGANIZATION CAN
DISTINGUISH ITS PRODUCT (OR PRODUCTS)
FROM COMPETITORS' PRODUCTS
B.
SATISFYING MANAGEMENT'S NEEDS AND
WANTS WITH THE IDEA OF MAXIMIZING
PROFITS IN THE SHORT RUN
C.
SELLING AS MUCH PRODUCT AS POSSIBLE
UNDER THE ASSUMPTION PEOPLE WILL BUY
MORE GOODS AND SERVICES IF AGGRESSIVE
SELLING TECHNIQUES ARE USED
D.
SELLING AS MUCH AS POSSIBLE UNDER THE
ASSUMPTION CONSUMERS WILL BUY MORE AT
LOWER PRICES
E.
FOCUSING ON PRODUCTION IN ORDER TO
INCREASE PRODUCT QUALITY AND LOWER
PRICES
ANS: A
PTS: 1
TOP: AACSB REFLECTIVE THINKING
MSC: BLOOMS LEVEL I KNOWLEDGE
REF: 5
OBJ: 01-2
KEY: CB&E MODEL CUSTOMER
33. THE MARKETING CONCEPT STRESSES THAT THE SOCIAL AND ECONOMIC JUSTIFICATION FOR AN
ORGANIZATION'S EXISTENCE IS THE SATISFACTION OF CUSTOMER NEEDS AND WANTS WHILE:
A.
PRODUCING A GOOD OR SERVICE AT THE
LOWEST POSSIBLE COST
B.
IMPROVING THE GENERAL STANDARD OF
LIVING
C.
CONSTANTLY INCREASING SALES VOLUMES
D.
APPLYING SCIENTIFIC MANAGEMENT
TECHNIQUES TO IMPROVE EFFICIENCY
E.
SIMULTANEOUSLY MEETING ORGANIZATION
OBJECTIVES
ANS: E
THE MARKETING CONCEPT HOLDS THAT THE NEEDS AND WANTS OF BOTH THE CUSTOMER AND
THE FIRM BE SERVED.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
34. AFTER HEARING HIS COMPANY CRITICIZED FOR ITS FAILURE TO RESPOND TO CONSUMER NEEDS,
THE CEO OF A BANK REALIZED THAT HIS COMPANY NEEDS TO ADHERE TO THE MARKETING
CONCEPT AND IMPLEMENT A MARKET-ORIENTED STRATEGY. WHICH OF THE FOLLOWING
ACTIONS WOULD BE THE BEST APPROACH TO ACHIEVING THIS GOAL?
A.
REORGANIZING THE COMPANY AND MAKING
MARKETING ITS MOST IMPORTANT
DEPARTMENT
B.
HIRING NEW SALESPEOPLE TO FIND NEW
CUSTOMERS
C.
EXPANDING THE ADVERTISING BUDGET TO
MAKE POTENTIAL CUSTOMERS MORE AWARE
OF ITS PRODUCT OFFERINGS
D.
CREATING CROSS-FUNCTIONAL TEAMS AND
INSTRUCTING THEM TO FOCUS ON CREATING
GREATER CUSTOMER VALUE
E.
HIRING A NEW PRODUCT DEVELOPMENT
MANAGER
ANS: D
MARKET-ORIENTED COMPANIES ARE SUCCESSFUL IN GETTING ALL BUSINESS FUNCTIONS
WORKING TOGETHER TO DELIVER CUSTOMER VALUE.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
35. JACQUES TORRES CHOCOLATE IS A FACTORY AND RETAIL STORE IN BROOKLYN. ITS OWNER IS
WILLING TO TRY TO PRODUCE NEW PRODUCTS WHEN HIS CUSTOMERS SUGGEST THEM—SUCH AS
CHILI-PEPPER-LACED CHOCOLATE CANDY. HIS ONLY CONDITION IS THAT WHEN HE ADDS NEW
PRODUCTS, HIS CUSTOMERS HAVE THE FINAL SAY ON WHETHER THE PRODUCT IS OF ANY VALUE.
ACCORDING TO TORRES, "IF SOMETHING DOESN'T MOVE, THAT'S THE LAST TIME YOU SEE IT." BY
FOCUSING ON CUSTOMERS' WANTS, THE CHOCOLATE COMPANY EXHIBITS A(N)_____
ORIENTATION.
A.
EXCHANGE
B.
PRODUCT
C.
PRODUCTION
D.
SALES
E.
MARKET
ANS: E
TORRES UNDERSTANDS THAT A SALE OCCURS BECAUSE A CUSTOMER MAKES A DECISION TO BUY.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
36. SAP, THE WORLD’S LARGEST BUSINESS SOFTWARE COMPANY, HAS PLEDGED TO PUT THE
“CUSTOMER AT THE CENTER” OF THEIR UNIVERSE. SAP HAS CAPTURED THE IDEA OF:
A.
THE 80/20 RULE
B.
MASLOW'S HIERARCHY OF NEEDS
C.
THE MARKETING CONCEPT
D.
THE SALES ORIENTATION PHILOSOPHY
E.
THE SOCIETAL CONCEPT
ANS: C
THE MARKETING CONCEPT JUSTIFIES A COMPANY'S EXISTENCE BY ITS ABILITY TO SATISFY
CUSTOMERS.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
37. A HOMEOWNER CALLED HANDYMAN DIRECT TO REPLACE A NOISY BATHROOM EXHAUST FAN.
WHEN THE REPAIRMAN ARRIVED AT THE HOME AND EXAMINED THE FAN, HE CONVINCED THE
HOMEOWNER THAT THE FAN SIMPLY NEEDED TO BE CLEANED AND OILED RATHER THAN
REPLACED. THIS WOULD FIX THE PROBLEM BETTER THAN REPLACING THE FAN—WITH LESS
TROUBLE AND LESS EXPENSE. THIS SORT OF DISCUSSION BETWEEN EMPLOYEES AND CUSTOMERS
IS COMMONPLACE AT HANDYMAN DIRECT AND INDICATES THE BUSINESS HAS A(N) _____
ORIENTATION.
A.
SALES
B.
MARKET
C.
PRODUCT
D.
EXCHANGE
E.
PRODUCTION
ANS: B
THE MARKETING CONCEPT, THE FOUNDATION OF A MARKET ORIENTATION, HOLDS THAT THE
NEEDS AND WANTS OF BOTH THE CUSTOMER AND THE FIRM BE SERVED.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
38. AT THE CONTAINER STORE EVERY EMPLOYEE IS TRAINED TO SERVE CUSTOMERS. FULL TIME
SALESPEOPLE RECEIVE 240 HOURS OF TRAINING. THE CONTAINER STORE WORKS TO HIRE PEOPLE
WHO ARE SELF-MOTIVATED AND HAVE A PASSION FOR CUSTOMER SERVICE. THE CONTAINER
STORE HAS A(N) _____ ORIENTATION.
A.
SALES
B.
MARKET
C.
PRODUCT
D.
SOCIETAL
E.
PRODUCTION
ANS: B
THE MARKETING CONCEPT, THE FOUNDATION OF A MARKET ORIENTATION, HOLDS THAT THE
NEEDS AND WANTS OF BOTH THE CUSTOMER AND THE FIRM BE SERVED.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
39. A COMPANY THAT WANTS TO IMPLEMENT A MARKET ORIENTATION WOULD NEED TO:
A.
DO RESEARCH ON ITS CUSTOMERS,
COMPETITORS, AND MARKETS
B.
DETERMINE HOW TO DELIVER SUPERIOR
CUSTOMER VALUE
C.
ESTABLISH AND MAINTAIN MUTUALLY
SATISFYING RELATIONSHIPS WITH
CUSTOMERS
D.
IMPLEMENT ACTIONS THAT PROVIDE VALUE
TO CUSTOMERS
E.
DO ALL OF THE ACTIVITIES LISTED
ANS: E
PTS: 1
TOP: AACSB REFLECTIVE THINKING
MSC: BLOOMS LEVEL IV ANALYSIS
REF: 5-6
OBJ: 01-2
KEY: CB&E MODEL STRATEGY
40. A COMPANY THAT HAS A MARKET ORIENTATION AND ADHERES TO THE MARKETING CONCEPT
DOES NOT:
A.
INTEGRATE ALL THE ACTIVITIES OF THE FIRM
TO SATISFY CUSTOMER WANTS
B.
FOCUS ON CONSUMER NEEDS AND WANTS
C.
DIFFERENTIATE THE FIRM'S PRODUCTS FROM
ITS COMPETITOR'S PRODUCTS
D.
FUEL SALES GROWTH THROUGH THE
APPLICATION OF AGGRESSIVE SALES
TECHNIQUES
E.
CONCENTRATE ON LONG-TERM GOAL
ACHIEVEMENT (SUCH AS PROFITS AND
GROWTH) FOR THE FIRM
ANS: D
AGGRESSIVE SALES TECHNIQUES ARE PART OF THE SALES ORIENTATION AND ARE NOT NEEDED IF
A COMPANY IS MEETING NEEDS AND WANTS OF ITS CUSTOMERS.
PTS: 1
REF: 5-6
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL VI EVALUATION
41. A COMPANY ADHERING TO THE MARKETING CONCEPT WILL LIKELY TAKE WHICH OF THE
FOLLOWING STEPS IF IT LEARNED THAT ITS CUSTOMERS WERE DISSATISFIED WITH ITS PRODUCT?
A.
B.
C.
HIRE MORE SALESPEOPLE
DECREASE ITS ORGANIZATIONAL OVERHEAD
INCREASE ITS ADVERTISING TO
UNDERSERVED MARKETS
D.
INCREASE THE NUMBER OF OUTLETS IN
WHICH THE PRODUCT IS SOLD
E.
CONDUCT RESEARCH TO DETERMINE IF ITS
CUSTOMERS' NEEDS HAVE CHANGED
ANS: E
A MARKETING CONCEPT AND MARKET-ORIENTED PHILOSOPHY ARE BASED ON THE CONSUMER'S
WANTS AND NEEDS, AND THE ORGANIZATION WILL FOCUS ITS ACTIVITIES ON SATISFYING THESE
CUSTOMERS BY LISTENING TO THEM AND REVISING STRATEGIES AS NECESSARY.
PTS: 1
REF: 5-6
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL IV ANALYSIS
42. WESTERN UNION FAILED TO DEFINE ITS COMPETITIVE ARENA AS TELECOMMUNICATIONS,
CONCENTRATING INSTEAD ON TELEGRAPH SERVICES, AND WAS EVENTUALLY OUTFLANKED BY
FAX TECHNOLOGY. HAD WESTERN UNION BEEN A _____-ORIENTED COMPANY, ITS
MANAGEMENT MIGHT HAVE BETTER UNDERSTOOD THE CHANGES TAKING PLACE AND
DEVELOPED STRATEGIES TO COUNTER THE THREAT.
A.
SALES
B.
EMPOWERMENT
C.
COMMUNITY
D.
SOCIETAL
E.
MARKET
ANS: E
THE MARKETING CONCEPT AND A MARKET-ORIENTED PHILOSOPHY IS BASED ON THE
CONSUMER'S WANTS AND NEEDS, AND THE ORGANIZATION WILL FOCUS ITS ACTIVITIES ON
SATISFYING THESE CUSTOMERS BY LISTENING TO THEM AND REVISING STRATEGIES AS
NECESSARY.
PTS: 1
REF: 6
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
43. AT THE SEARS WEB SITE, CUSTOMERS CAN CHAT ON-LINE WITH CUSTOMER SERVICE
REPRESENTATIVES WHILE SHOPPING. THIS LIVE HELP ALLOWS CUSTOMERS TO HAVE QUESTIONS
ANSWERED BEFORE PLACING AN ORDER. THIS FOCUS ON MEETING CUSTOMER NEEDS
ILLUSTRATES THAT SEARS HAS A(N) _____ ORIENTATION.
A.
SOCIETAL MARKETING
B.
MARKET
C.
SALES
D.
PRODUCTION
E.
ONE-TO-ONE
ANS: B
A MARKET-ORIENTED PHILOSOPHY IS BASED ON THE CONSUMER'S WANTS AND NEEDS, AND THE
DEALER SATISFIED THESE NEEDS BY PROVIDING EXCELLENT CUSTOMER SERVICE. BUILDING A
RELATIONSHIP WITH THIS CUSTOMER WAS AN IMPORTANT KEY.
PTS: 1
REF: 6
OBJ: 01-2
TOP: AACSB REFLECTIVE
THINKING
KEY: CB&E MODEL CUSTOMER
MSC: BLOOMS LEVEL III APPLICATION
44. AN ORGANIZATION WITH A(N) _____ BELIEVES THAT IT EXISTS NOT ONLY TO SATISFY CUSTOMER
WANTS AND NEEDS AND TO MEET ORGANIZATIONAL OBJECTIVES BUT ALSO TO PRESERVE OR
ENHANCE INDIVIDUALS' AND SOCIETY'S LONG-TERM BEST INTERESTS.
A.
SALES ORIENTATION
B.
MARKET ORIENTATION
C.
ETHICAL BUSINESS MISSION
D.
FOCUSED TARGET MARKET STRATEGY
E.
SOCIETAL MARKETING ORIENTATION
ANS: E
THE SOCIETAL MARKETING ORIENTATION EXTENDS THE MARKETING CONCEPT BY
ACKNOWLEDGING THAT SOME PRODUCTS THAT CUSTOMERS WANT MAY NOT REALLY BE IN THEIR
BEST INTERESTS OR THE BEST INTERESTS OF SOCIETY AS A WHOLE.
PTS: 1
REF: 6
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB ETHICS
MSC: BLOOMS LEVEL I KNOWLEDGE
45. MOST COMPANIES BECOME SENSITIZED TO COMMUNITY ISSUES AFTER THEY'VE DONE ENOUGH
DAMAGE TO DRAW THE LOCALS' ANGER. DOFASCO, INC., A HIGHLY SUCCESSFUL STEEL COMPANY
IN ONTARIO, TRIES TO GET AHEAD OF BUSINESS AND COMMUNITY ISSUES BY ANNUALLY
BRINGING TOGETHER REPRESENTATIVES FROM THE LOCAL AREA AND DECIDING WHAT PROJECTS
TO IMPROVE THE LOCAL ENVIRONMENT WILL BE IMPLEMENTED. THIS ANNUAL COMMUNITYWIDE MEETING INDICATES DOFASCO HAS A _____ ORIENTATION.
A.
SOCIETAL MARKETING
B.
SALES
C.
RECIPROCAL EXCHANGE
D.
PRODUCTION
E.
PRODUCT
ANS: A
SOCIETAL MARKETING ORIENTATION IS THE IDEA THAT AN ORGANIZATION EXISTS NOT ONLY TO
SATISFY CUSTOMER WANTS AND NEEDS AND TO MEET ORGANIZATIONAL OBJECTIVES BUT ALSO
TO PRESERVE INDIVIDUALS' AND SOCIETY'S LONG-TERM BEST INTERESTS.
PTS: 1
REF: 6
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB ETHICS
MSC: BLOOMS LEVEL III APPLICATION
46. CURTIS PACKAGING DEVELOPED AN ENVIRONMENTALLY FRIENDLY ALTERNATIVE TO FOIL
CALLED CURT CHROME, WHICH IS 100 PERCENT RECYCLABLE. THIS IS AN EXAMPLE OF A _____
ORIENTATION.
A.
SOCIETAL MARKETING
B.
SALES
C.
RECIPROCAL EXCHANGE
D.
PRODUCTION
E.
PRODUCT
ANS: A
SOCIETAL MARKETING ORIENTATION IS THE IDEA THAT AN ORGANIZATION EXISTS NOT ONLY TO
SATISFY CUSTOMER WANTS AND NEEDS AND TO MEET ORGANIZATIONAL OBJECTIVES BUT ALSO
TO PRESERVE INDIVIDUALS' AND SOCIETY'S LONG-TERM BEST INTERESTS.
PTS: 1
REF: 6
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB ETHICS
MSC: BLOOMS LEVEL III APPLICATION
47. PROCTER & GAMBLE DECIDED TO ADDRESS THE FACT THAT HISPANIC WOMEN ARE MORE LIKELY
TO DIE FROM BREAST CANCER BECAUSE THEY'RE RELUCTANT TO GET MAMMOGRAMS OR DISCUSS
SCREENING. SO P&G BROUGHT SCREENING TO THE SUPERMARKET, PARKING MOBILE
MAMMOGRAPHY VEHICLES IN GROCERY STORE PARKING LOTS IN TEXAS AND INVITING SHOPPERS
IN FOR FREE X-RAYS. TIE-INS WITH LOCAL HOSPITALS ASSURED THAT WOMEN WITH SUSPICIOUS
FILMS GOT FOLLOW-UP CARE. P&G ADOPTED A _____ ORIENTATION TO ACHIEVE THIS GOAL.
A.
PROMOTIONAL
B.
SOCIETAL MARKETING
C.
CUSTOMER
D.
MARKETING
E.
PRODUCT
ANS: B
SOCIETAL MARKETING ORIENTATION IS THE IDEA THAT AN ORGANIZATION EXISTS NOT ONLY TO
SATISFY CUSTOMER WANTS AND NEEDS AND TO MEET ORGANIZATIONAL OBJECTIVES BUT ALSO
TO PRESERVE INDIVIDUALS' AND SOCIETY'S LONG-TERM BEST INTERESTS.
PTS: 1
REF: 6
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB ETHICS
MSC: BLOOMS LEVEL III APPLICATION
48. WHICH OF THE FOLLOWING STATEMENTS ABOUT THE SOCIETAL ORIENTATION IS FALSE?
A.
COMPANIES THAT PROTECT THE
ENVIRONMENT BY USING ALL-NATURAL
MATERIALS IN THEIR PRODUCTS ARE
SHOWING A SOCIETAL MARKETING
ORIENTATION.
B.
MARKETERS CANNOT DELIVER ALL BENEFITS
SOUGHT BY CUSTOMERS BECAUSE THESE
BENEFITS MAY NOT BE IN THE LONG-TERM
BEST INTERESTS OF THE CUSTOMERS.
C.
THE SOCIETAL MARKETING CONCEPT IS AN
IMPORTANT REFINEMENT OF THE MARKET
CONCEPT.
D.
ORGANIZATIONS HAVE BOTH A SOCIAL AND
ECONOMIC JUSTIFICATION FOR THEIR
EXISTENCE.
E.
THE MAJORITY OF CONSUMERS SUPPORT
ENVIRONMENTALLY-FRIENDLY COMPANIES
AND WILLINGLY PAYING MORE FOR THESE
PRODUCTS.
ANS: E
WHILE A MAJORITY OF CONSUMERS REPORT THAT ENVIRONMENTAL ISSUES ARE IMPORTANT,
THEY ARE NOT WILLING TO MAKE TRADEOFFS FOR HIGHER COSTS OR LOWER PERFORMANCE.
PTS: 1
REF: 6-7
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL VI EVALUATION
49. LIFE IS GOOD® DEVELOPED THE “GOOD KARMA” LINE OF ENVIRONMENTALLY FRIENDLY 100
PERCENT ORGANIC COTTON APPAREL. THE PRODUCTION OF THE GOOD KARMA LINE IS BE
CONSISTENT WITH A _____ ORIENTATION.
A.
SOCIETAL MARKETING
B.
SUPPLIER
C.
SALES
D.
PRODUCTION
E.
PHILANTHROPIC
ANS: A
SOCIETAL MARKETING ORIENTATION IS THE IDEA THAT AN ORGANIZATION EXISTS NOT ONLY TO
SATISFY CUSTOMER WANTS AND NEEDS AND TO MEET ORGANIZATIONAL OBJECTIVES BUT ALSO
TO PRESERVE INDIVIDUALS' AND SOCIETY'S LONG-TERM BEST INTERESTS.
PTS: 1
REF: 6-7
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB ETHICS
MSC: BLOOMS LEVEL III APPLICATION
50. TARGET SHOPPERS CAN ENROLL IN THE TAKE CHARGE OF EDUCATION® PROGRAM SO THAT
TARGET WILL DONATE ONE PERCENT OF PURCHASES MADE WITH A CONSUMER’S REDCARD, A
TARGET CREDIT CARD. THE MORE MONEY CUSTOMERS SPEND, THE LARGER THE DONATION TO
THE CONSUMER’S SCHOOL OF CHOICE. BY INSTITUTING THE TAKE CHARGE OF EDUCATION®
PROGRAM TO HELP LOCAL SCHOOLS, TARGET HAS SHOWN A _____ ORIENTATION.
A.
SOCIETAL MARKETING
B.
SUPPLIER
C.
SALES
D.
PRODUCTION
E.
PHILANTHROPIC
ANS: A
SOCIETAL MARKETING ORIENTATION IS THE IDEA THAT AN ORGANIZATION EXISTS NOT ONLY TO
SATISFY CUSTOMER WANTS AND NEEDS AND TO MEET ORGANIZATIONAL OBJECTIVES BUT ALSO
TO PRESERVE INDIVIDUALS' AND SOCIETY'S LONG-TERM BEST INTERESTS.
PTS: 1
REF: 6-7
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB ETHICS
MSC: BLOOMS LEVEL III APPLICATION
51. JEWELRY STORES WANT TO PROVIDE THEIR CUSTOMERS WITH THE HIGHEST QUALITY OF
DIAMONDS AVAILABLE AT THE LOWEST POSSIBLE PRICES. UNFORTUNATELY, THE LOWEST PRICED
DIAMONDS THESE DAYS ARE SOLD BY AFRICAN REBELS WHO USE THE PROFITS TO ENGAGE IN
GENOCIDE. HUMAN RIGHTS ORGANIZATION HAVE ASKED JEWELERS TO BUY DIAMONDS THAT ARE
"CONFLICT-FREE"—THAT IS FROM SOUTH AFRICA, AUSTRALIA, OR CANADA. LEEBRANT IS ONE
RETAIL JEWELRY STORE THAT SELLS ONLY DIAMONDS THAT ARE CERTIFIED TO BE FROM THESE
COUNTRIES. LEEBRANT IS EXHIBITING WHICH MARKETING MANAGEMENT ORIENTATION?
A.
PRODUCTION ORIENTATION
B.
C.
D.
E.
SALES ORIENTATION
SOCIETAL MARKETING ORIENTATION
DIRECT ORIENTATION
OMNIPOTENT ORIENTATION
ANS: C
LEEBRANT HAS A SOCIETAL MARKETING ORIENTATION BECAUSE IT IS NOT ONLY TRYING TO
SATISFY CUSTOMERS' WANTS BUT ALSO TRYING TO ENHANCE SOCIETY'S LONG-TERM BEST
INTERESTS. THE OTHER JEWELERS THAT CONTINUE TO SELL DIAMONDS PURCHASED FROM THE
REBELS ARE MORE INTERESTED IN SATISFYING THEIR CUSTOMERS’ DESIRE FOR LOWER PRICES
THAN IN SERVING SOCIETY.
PTS: 1
REF: 6-7
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB ETHICS
MSC: BLOOMS LEVEL III APPLICATION
52. WHICH MARKETING MANAGEMENT PHILOSOPHY FOCUSES ON THE QUESTION, “WHAT CAN WE
MAKE OR DO BEST?”
A.
PRODUCTION ORIENTATION
B.
MARKETING ORIENTATION
C.
SALES ORIENTATION
D.
SOCIETAL MARKETING ORIENTATION
E.
INTERNAL ORIENTATION
ANS: A
A PRODUCTION ORIENTATION FOCUSES ON THE INTERNAL CAPABILITIES OF THE FIRM RATHER
THAN ON THE DESIRES AN NEEDS OF THE MARKETPLACE.
PTS: 1
REF: 4 | 8
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
53. WHICH MARKETING MANAGEMENT PHILOSOPHY FOCUSES ON THE QUESTION, “HOW CAN WE
SELL MORE AGGRESSIVELY?”
A.
PRODUCTION ORIENTATION
B.
MARKETING ORIENTATION
C.
SALES ORIENTATION
D.
EXTERNAL ORIENTATION
E.
INTERNAL ORIENTATION
ANS: C
A SALES ORIENTATION IS BASED ON THE IDEAS THAT PEOPLE WILL BUY MORE GOODS AND
SERVICES IF AGGRESSIVE SALES TECHNIQUES ARE USED AND THAT HIGH SALES RESULT IN HIGH
PROFITS.
PTS: 1
REF: 5 | 8
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
54. WHICH MARKETING MANAGEMENT PHILOSOPHY FOCUSES ON THE QUESTION, “WHAT DO
CUSTOMERS WANT AND NEED?”
A.
B.
C.
D.
E.
SALES ORIENTATION
PRODUCTION ORIENTATION
PRODUCT ORIENTATION
MARKET ORIENTATION
INTERNAL ORIENTATION
ANS: D
A MARKET ORIENTATION IS BASED ON THE MARKETING CONCEPT, WHICH IS THE IDEA THAT THE
SOCIAL AND ECONOMIC JUSTIFICATION FOR AN ORGANIZATION’S EXISTENCE IS THE
SATISFACTION OF CUSTOMER WANTS AND NEEDS WHILE MEETING ORGANIZATIONAL OBJECTIVE.
PTS: 1
REF: 5 | 8
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
55. WHICH MARKETING MANAGEMENT PHILOSOPHY FOCUSES ON THE QUESTION, “WHAT DO
CUSTOMERS WANT AND NEED, AND HOW CAN WE BENEFIT SOCIETY?”
A.
INTERNAL ORIENTATION
B.
EXTERNAL ORIENTATION
C.
SALES ORIENTATION
D.
SOCIETAL MARKETING ORIENTATION
E.
PRODUCTION ORIENTATION
ANS: D
THE SOCIETAL MARKETING CONCEPT EXTENDS THE MARKETING CONCEPT BY ACKNOWLEDGING
THAT SOME PRODUCTS THAT CUSTOMERS WANT MAY NOT REALLY BE IN THEIR BEST INTERESTS
OR THE BEST INTERESTS OF SOCIETY AS A WHOLE.
PTS: 1
REF: 6 | 8
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB ETHICS
MSC: BLOOMS LEVEL II COMPREHENSION
56. THE SALES AND MARKET ORIENTATIONS DIFFER ON ALL OF THE FOLLOWING CHARACTERISTICS
EXCEPT:
A.
THOSE TO WHOM THE PRODUCT IS DIRECTED
B.
FIRM’S PERFORMANCE
C.
FIRM’S BUSINESS
D.
FIRM’S PRIMARY GOAL
E.
TOOLS TO ACHIEVE GOALS
ANS: B
THESE TWO ORIENTATIONS DIFFER WITH RESPECT TO THE ORGANIZATION’S FOCUS, THE FIRM’S
BUSINESS, THOSE TO WHOM THE PRODUCT IS DIRECTED, THE FIRM’S PRIMARY GOAL, AND THE
TOOLS USED TO ACHIEVE THOSE GOALS.
PTS: 1
REF: 8
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL VI EVALUATION
57. MARKET-ORIENTED FIRMS PRIMARILY FOCUS THEIR EFFORTS UPON:
A.
IMPROVING THE TECHNOLOGICAL SKILLS AND
COMPETITIVE ADVANTAGES OF THE FIRM
B.
SATISFYING THE ORGANIZATION'S NEEDS FOR
LOW OVERHEAD
C.
ACHIEVING THE COMPANY’S SOCIETAL
RESPONSIBILITIES INEXPENSIVELY
D.
DISTRIBUTING GOODS AND SERVICES
E.
SATISFYING THE WANTS AND NEEDS OF THEIR
CUSTOMERS
ANS: E
MARKET-ORIENTED FIRMS ARE FOCUSED OUTWARD TOWARD THEIR CUSTOMERS.
PTS: 1
REF: 9
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL VI EVALUATION
58. WHICH OF THE FOLLOWING STATEMENTS ABOUT A TYPICAL SALES-ORIENTED BUSINESS IS
TRUE?
A.
THE COMPANY DEVELOPS ITS PRODUCTS TO
MEET THE NEEDS OF SPECIFIC GROUPS OF
PEOPLE.
B.
THE PRIMARY GOAL OF THE COMPANY IS
PROFIT THROUGH CUSTOMER SATISFACTION.
C.
THE COMPANY INVESTS THE MAJORITY OF ITS
RESOURCES IN PROMOTING ITS PRODUCTS
AND SERVICES.
D.
E.
THE COMPANY IS IN BUSINESS TO SATISFY
CUSTOMERS' WANTS AND NEEDS AND
DELIVER SUPERIOR VALUE.
ALL OF THESE STATEMENTS ABOUT A
TYPICAL SALES-ORIENTED BUSINESS ARE
TRUE.
ANS: C
SEE REVIEW LEARNING OUTCOME 3.
PTS: 1
REF: 9 |15
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL VI EVALUATION
59. _____ IS DEFINED AS THE RELATIONSHIP BETWEEN BENEFITS AND THE SACRIFICE NECESSARY TO
OBTAIN THOSE BENEFITS.
A.
OPPORTUNITY COST
B.
MARKETING UTILITY
C.
MARKET QUALITY
D.
SATISFACTION PERCENTAGE
E.
CUSTOMER VALUE
ANS: E
PTS: 1
TOP: AACSB REFLECTIVE THINKING
REF: 9
OBJ: 01-3
KEY: CB&E MODEL CUSTOMER
MSC: BLOOMS LEVEL I KNOWLEDGE
60. THE U.S. POSTAL SERVICE (USPS) ARGUES THAT ITS EXPRESS SERVICE IS COMPARABLE TO
WHAT IS OFFERED BY FEDEX AND THAT ITS PRICES ARE MUCH LOWER. YET, FEDEX DOMINATES
WITH MORE THAN A 45 PERCENT SHARE OF THE EXPRESS-DELIVERY MARKET. WHICH OF THE
FOLLOWING STATEMENTS DESCRIBES THIS SITUATION?
A.
THE USPS IS PERCEIVED AS OFFERING
GREATER CUSTOMER VALUE.
B.
FEDEX IS PERCEIVED AS OFFERING GREATER
CUSTOMER VALUE.
C.
FEDEX AND THE USPS OFFER THE SAME
CUSTOMER VALUE.
D.
CUSTOMER VALUE IS NOT AN ISSUE IN
DECIDING WHICH EXPRESS-DELIVERY
SERVICE TO USE.
E.
THE USPS SHOULD LOWER ITS PRICES EVEN
FURTHER TO INCREASE MARKET SHARE.
ANS: B
CUSTOMER VALUE IS DEFINED AS THE RELATIONSHIP BETWEEN BENEFITS AND THE SACRIFICE
NECESSARY TO OBTAIN THOSE BENEFITS.
PTS: 1
REF: 9
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
61. MARKETERS INTERESTED IN OFFERING CUSTOMER VALUE CAN:
A.
OFFER PRODUCTS THAT PERFORM
B.
GIVE THE BUYER FACTS
C.
OFFER ORGANIZATION-WIDE COMMITMENT IN
SERVICE AND AFTER-SALES SUPPORT
D.
AVOID UNREALISTIC PRICING
E.
DO ALL OF THESE
ANS: E
PTS: 1
TOP: AACSB REFLECTIVE THINKING
MSC: BLOOMS LEVEL IV ANALYSIS
REF: 9-10
OBJ: 01-3
KEY: CB&E MODEL STRATEGY
62. BECAUSE CHARLENE WORKS THE LATE SHIFT, SHE REALLY LOVES TIVO BECAUSE IT ALLOWS
HER TO WATCH HER FAVORITE TV SHOWS ON HER OWN SCHEDULE. TIVO PROVIDES WHAT
ELEMENT OF VALUE TO CHARLENE?
A.
OFFERING PRODUCTS THAT PERFORM
B.
EARNING HER TRUST
C.
AVOIDING UNREALISTIC PRICING
D.
GIVING HER FACTS
E.
CO-CREATION
ANS: E
CO-CREATION ALLOWS CUSTOMERS TO HELP CREATE THEIR OWN EXPERIENCE.
PTS: 1
REF: 10
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
63. WHICH OF THE FOLLOWING IS THE CUSTOMER’S EVALUATION OF A GOOD OR SERVICE IN TERMS
OF WHETHER THAT GOOD OR SERVICE HAS MET HIS OR HER NEEDS AND EXPECTATIONS?
A.
VALUE
B.
PERCEPTION
C.
ATTITUDE
D.
DISSONANCE
E.
SATISFACTION
ANS: E
FAILURE TO MEET NEEDS AND EXPECTATIONS RESULTS AND DISSATISFACTION WITH THE GOOD
OR SERVICE.
PTS: 1
REF: 10
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
64. WHEN CUSTOMER EXPECTATIONS REGARDING PRODUCT QUALITY, SERVICE QUALITY, AND
VALUE-BASED PRICE ARE MET OR EXCEEDED, _____ IS CREATED.
A.
A VALUE LINE
B.
A QUALITY RIFT
C.
PLANNING EXCELLENCE
D.
CUSTOMER SATISFACTION
E.
EXPECTATION SATISFACTION
ANS: D
CUSTOMER SATISFACTION IS THE CUSTOMER’S EVALUATION OF A GOOD OR SERVICE IN TERMS OF
WHETHER THAT GOOD OR SERVICE HAS MET THE CUSTOMER’S NEEDS AND EXPECTATIONS.
PTS: 1
REF: 10
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
65. 96 PERCENT OF USAA HOME INSURANCE POLICY HOLDERS REPORT THAT USAA
REPRESENTATIVES MEETS THEIR COMMITMENT IN CALLING BACK CUSTOMERS QUICKLY ABOUT
CLAIMS. THE MOST LIKELY RESULT OF USAA’S EFFORTS IS:
A.
MANAGEMENT EMPOWERMENT
B.
RETAILER-CUSTOMER SYNERGY
C.
CUSTOMER SATISFACTION
D.
TRANSACTIONAL MARKETING
E.
DISINTERMEDIATION
ANS: C
WHEN CUSTOMER EXPECTATIONS REGARDING PRODUCT QUALITY, SERVICE QUALITY, AND
VALUE-BASED PRICE ARE MET OR EXCEEDED, CUSTOMER SATISFACTION IS CREATED.
PTS: 1
REF: 10
OBJ: 01-3
TOP: AACSB REFLECTIVE
THINKING
KEY: CB&E MODEL CUSTOMER
MSC: BLOOMS LEVEL III APPLICATION
66. NORDSTROM DEPARTMENT STORE EMPHASIZES _____ BY ACCEPTING RETURNS ON ITEMS NOT
PURCHASED THERE.
A.
MANAGEMENT EMPOWERMENT
B.
MANAGEMENT-CUSTOMER SYNERGY
C.
CUSTOMER SATISFACTION
D.
TRANSACTIONAL MARKETING
E.
DIRECT SELLING
ANS: C
WHEN CUSTOMER EXPECTATIONS REGARDING PRODUCT QUALITY, SERVICE QUALITY, AND
VALUE-BASED PRICE ARE MET OR EXCEEDED, CUSTOMER SATISFACTION IS CREATED.
PTS: 1
REF: 10
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
67. _____ IS A STRATEGY THAT FOCUSES ON KEEPING AND IMPROVING RELATIONSHIPS WITH
CURRENT CUSTOMERS.
A.
COMMITMENT SELLING
B.
RELATIONSHIP MARKETING
C.
TRANSACTIONAL MARKETING
D.
MARKET ENGINEERING
E.
ORGANIZATION-CUSTOMER SYNERGY
ANS: B
THIS IS THE DEFINITION OF RELATIONSHIP MARKETING.
PTS: 1
REF: 10
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
68. NETWORKCAR.COM SELLS A PLUG-IN DEVICE THAT CONNECTS TO COMPUTER DIAGNOSTIC PORTS
THAT ARE STANDARD ON CARS. THE DEVICE BEAMS SIGNALS TO DEALERS WHO CAN REMOTELY
DIAGNOSE OR SPOT TROUBLE. THE DEVICE ALLOWS CAR DEALERSHIPS TO MAINTAIN A CLOSER
BOND WITH THEIR CUSTOMERS BY OFFERING MAINTENANCE BEFORE A PROBLEM LEAVES
CUSTOMERS WITH AN INOPERABLE OR POSSIBLY DANGEROUS CAR. WITH THE DEVICE, DEALERS
CAN BETTER ENGAGE IN:
A.
MANAGEMENT EMPOWERMENT
B.
MANAGEMENT-CUSTOMER SYNERGY
C.
RELATIONSHIP MARKETING
D.
TRANSACTIONAL MARKETING
E.
DIRECT SELLING
ANS: C
RELATIONSHIP MANAGEMENT IS A STRATEGY THAT ENTAILS FORGING LONG-TERM
PARTNERSHIPS WITH CUSTOMERS.
PTS: 1
REF: 10-11
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
69. KELLOGG’S GIVES CONSUMERS THE CHANCE TO RECEIVE A FREE DVD. CONSUMERS WHO BUY
FIVE BOXES OF SPECIALLY MARKED CEREAL CAN CUT OUT THE COUPONS AND MAIL IN THEIR
COMPLETED OFFICIAL FORM TO GET A FREE DVD. KELLOGG’S IS ENGAGING IN:
A.
TRANSACTIONAL MARKETING
B.
SPORTS DISTRIBUTION
C.
RELATIONSHIP MARKETING
D.
ONE-TO-ONE MARKETING
E.
CUSTOMER TRANSFORMATION
ANS: C
RELATIONSHIP MARKETING IS A STRATEGY THAT ENTAILS FORGING LONG-TERM PARTNERSHIPS
WITH CUSTOMERS.
PTS: 1
REF: 10-11
OBJ: 01-3
THINKING
KEY: CB&E MODEL CUSTOMER | CB&E MODEL PROMOTION
MSC: BLOOMS LEVEL III APPLICATION
TOP: AACSB REFLECTIVE
70. FREQUENT-FLYER PROGRAMS ARE AN EXAMPLE OF FINANCIAL INCENTIVES TO CUSTOMERS IN
EXCHANGE FOR THEIR CONTINUING PATRONAGE. AFTER FLYING A CERTAIN NUMBER OF MILES
OR FLYING A SPECIFIED NUMBER OF TIMES, THE FREQUENT-FLYER PROGRAM PARTICIPANT EARNS
A FREE FLIGHT OR SOME OTHER AWARD SUCH AS FREE LODGING. AIRLINES THAT USE FREQUENTFLYER PROGRAMS ARE PRACTICING:
A.
COMMITMENT SELLING
B.
TRANSACTION MARKETING
C.
TRANSFORMATIONAL MARKETING
D.
MARKETING ENGINEERING
E.
RELATIONSHIP MARKETING
ANS: E
THE STRATEGY THAT ENTAILS FORGING LONG-TERM PARTNERSHIPS WITH CUSTOMERS IS CALLED
RELATIONSHIP MARKETING.
PTS: 1
REF: 10-11
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
71. MOST SUCCESSFUL RELATIONSHIP MARKETING STRATEGIES DEPEND ON:
A.
CUSTOMER-ORIENTED PERSONNEL
B.
EFFECTIVE TRAINING PROGRAMS
C.
EMPLOYEES WITH AUTHORITY TO MAKE
DECISIONS AND SOLVE PROBLEMS
D.
TEAMWORK
E.
ALL OF THESE
ANS: E
PTS: 1
REF: 11
OBJ: 01-3
TOP: AACSB REFLECTIVE THINKING
MSC: BLOOMS LEVEL IV ANALYSIS
KEY: CB&E MODEL STRATEGY
72. THE GEEK SQUAD IS A TECH SUPPORT STATION LOCATED INSIDE EVERY BEST BUY ELECTRONICS
RETAIL STORE. BEST BUY GIVES INTENSIVE TRAINING TO THE GEEKS. THE PURPOSE OF THIS
TRAINING IS TO:
A.
IMPROVE CUSTOMER SERVICE
B.
GIVE HIGHER EDUCATION BENEFITS TO
EMPLOYEES
C.
PROMOTE THE COMPANY IMAGE BY
INCREASING PUBLIC AWARENESS
D.
REDUCE THE NEED OF EMPOWERMENT
E.
INCREASE EMPLOYMENT LEVELS
ANS: A
LEADING MARKETERS RECOGNIZE THE ROLE OF EMPLOYEE TRAINING IN CUSTOMER SERVICE.
PTS: 1
REF: 12
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
73. SOME MARKET-ORIENTED FIRMS GIVE EMPLOYEES EXPANDED AUTHORITY TO SOLVE CUSTOMER
PROBLEMS ON THE SPOT. THIS IS KNOWN AS:
A.
TRAINING
B.
DEREGULATION
C.
EMPOWERMENT
D.
COMMISSIONING
E.
MEDIATING
ANS: C
EMPOWERMENT IS THE DELEGATION OF AUTHORITY TO SOLVE CUSTOMER PROBLEMS QUICKLY,
USUALLY BY THE FIRST PERSON THAT THE CUSTOMER NOTIFIES REGARDING A PROBLEM.
PTS: 1
REF: 12
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
74. _____ GIVES CUSTOMERS THE FEELING THEIR CONCERNS ARE BEING ADDRESSED AND AT THE
SAME TIME GIVES EMPLOYEES THE FEELING THEIR EXPERTISE MATTERS TO MANAGEMENT.
A.
MANAGEMENT-EMPLOYEE SYNERGY
B.
ORGANIZATIONAL ENTROPY
C.
MANAGERIAL RECIPROCITY
D.
EMPOWERMENT
E.
DELEGATION
ANS: D
EMPOWERMENT IS THE DELEGATION OF AUTHORITY TO SOLVE CUSTOMERS’ PROBLEMS QUICKLY,
USUALLY BY THE FIRST PERSON THAT THE CUSTOMER NOTIFIES REGARDING A PROBLEM.
PTS: 1
REF: 12
OBJ: 01-3
TOP: AACSB REFLECTIVE
THINKING
KEY: CB&E MODEL STRATEGY
MSC: BLOOMS LEVEL II COMPREHENSION
75. THE RITZ CARLTON HAS SERVICE VALUES WHICH GUIDE EMPLOYEES IN PROVIDING ITS GOLD
STANDARD SERVICE. ONE OF THE SERVICE VALUES STATES “I OWN AND IMMEDIATELY RESOLVE
GUEST PROBLEMS.” THE RITZ CARLTON MANAGEMENT USES _____ TO PROVIDE CUSTOMER
SERVICE.
A.
TRAINING
B.
DEREGULATION
C.
EMPOWERMENT
D.
COMMISSIONING
E.
MEDIATING
ANS: C
EMPOWERMENT IS THE DELEGATION OF AUTHORITY TO SOLVE CUSTOMERS’ PROBLEMS QUICKLY.
PTS: 1
REF: 12
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
76. AS PART OF INSTITUTING AN EMPOWERMENT PROGRAM, A MARKETING DIRECTOR SHOULD:
A.
HIRE COLLEGE GRADUATES WHO HAVE THE
LATEST TRAINING IN MARKETING
MANAGEMENT TECHNIQUES
B.
CREATE A CUSTOMER-SERVICE DEPARTMENT
AND PLACE A KEY STAFF PERSON IN CHARGE
OF THE DEPARTMENT
C.
TRAIN THE COMPANY'S STAFF TO JUDGE THE
QUALITY OF THE PRODUCTS THE FIRM
PRODUCES
D.
ALLOW NON-MANAGEMENT EMPLOYEES TO
RESOLVE PROBLEMS ON THEIR OWN WITHOUT
PRIOR APPROVAL FROM THEIR IMMEDIATE
SUPERVISORS
E.
CONDUCT A SURVEY OF THE COMPANY'S
MARKETING STAFF TO LEARN ABOUT
EMPLOYEE MORALE
ANS: D
EMPOWERMENT REFERS TO FIRMS THAT GIVE EMPLOYEES EXPANDED AUTHORITY TO SOLVE
CUSTOMER PROBLEMS ON THE SPOT WITHOUT HAVING TO GET MANAGEMENT'S PERMISSION
FIRST.
PTS: 1
REF: 12
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL VI EVALUATION
77. _____ IS THE COLLABORATIVE EFFORTS OF PEOPLE TO ACHIEVE COMMON OBJECTIVES.
A.
EFFORT TRAINING
B.
TEAMWORK
C.
D.
E.
EMPOWERMENT
OJT TRAINING
MEDIATION
ANS: B
THIS IS THE DEFINITION OF TEAMWORK.
PTS: 1
REF: 12
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
78. TUFF SHED, INC. IS ONE OF THE LEADING SUPPLIERS OF INSTALLED STORAGE BUILDINGS AND
GARAGES IN THE UNITED STATES. TUFF SHED MANDATES THAT SALES, MANAGEMENT AND
CONSTRUCTION TEAMS WORK TOGETHER TO ANTICIPATE AND ELIMINATE POTENTIAL PROBLEMS.
THEY MAKE SURE CUSTOMERS GET THE RIGHT BUILDINGS FOR THEIR NEEDS, AND THEY ALL ARE
BUILT WELL AND IN A TIMELY MANNER. BY USING TEAMWORK, TUFF SHED:
A.
OPERATES SUCCESSFULLY USING A
PRODUCTION ORIENTATION
B.
PROVIDES ITS CUSTOMER WITH A HIGH LEVEL
OF SATISFACTION
C.
HAS A HIGH EMPLOYEE TURNOVER RATE
D.
DOES NOT DELIVER SUPERIOR CUSTOMER
SERVICE
E.
HAS A SALES ORIENTATION
ANS: B
TEAMWORK IS ONE WAY A COMPANY WITH A MARKET ORIENTATION CREATES CUSTOMER
SATISFACTION.
PTS: 1
REF: 12-13
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
79. A SALES-ORIENTED FIRM DEFINES ITS BUSINESS (OR MISSION) IN TERMS OF:
A.
EMPLOYEES
B.
GOODS AND SERVICES
C.
CUSTOMERS
D.
COMPETITORS
E.
BENEFITS
ANS: B
A SALES-ORIENTED FIRM FOCUSES INWARD ON ITS PRODUCTS AND SERVICES.
PTS: 1
REF: 13
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
80. A MARKET-ORIENTED FIRM DEFINES ITS BUSINESS IN TERMS OF:
A.
GOODS AND SERVICES
B.
THE BENEFITS ITS CUSTOMERS SEEK
C.
EMPLOYEE EMPOWERMENT
D.
COMPETITIVE POSITION
E.
CUSTOMER SATISFACTION
ANS: B
A MARKET-ORIENTED FIRM IS DEFINED IN TERMS OF THE BENEFITS ITS CUSTOMERS SEEK.
PTS: 1
REF: 13
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
81. REDEFINING THE BUSINESS MISSION OF A MATTRESS MANUFACTURER AS "A GOOD NIGHT'S
SLEEP" RATHER THAN STATING THE MISSION AS "THE MANUFACTURE OF HIGH-QUALITY
MATTRESSES" WILL:
A.
NOT STIMULATE AN AWARENESS OF CHANGES
IN CONSUMER DESIRES
B.
BE TOO BROAD A STATEMENT TO BE OF ANY
REAL USE IN SERVING CUSTOMERS
C.
STIFLE CREATIVITY IN DISCOVERING
OPPORTUNITIES TO SERVE CUSTOMERS
D.
HELP ENSURE THE FIRM RETAINS ITS FOCUS
ON CUSTOMERS
E.
ENSURE THE CORE PRODUCTS WILL BE
RETAINED
ANS: D
THE BROADER BUSINESS MISSION OF "A GOOD NIGHT SLEEP" WILL STIMULATE INNOVATION AND
CREATIVITY BECAUSE NOT ALL SLEEP AIDS ARE MATTRESSES. IT WILL LEAD THE COMPANY TO
FURTHER GROWTH.
PTS: 1
REF: 13
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
82. ONE OF THE REASONS GIVEN FOR THE DECLINE OF BRITANNICA IS THAT THE FIRM DEFINED ITS
BUSINESS AS PUBLISHING BOOKS INSTEAD OF PROVIDING INFORMATION. BRITANNICA FAILED TO:
A.
DEFINE ITS MISSION IN TERMS OF THE
BENEFITS ITS CUSTOMERS SEEK
B.
IGNORE THE MARKETING CONCEPT OF
SERVING CUSTOMER NEEDS AND WANTS
C.
REALIZE "CUSTOMERS ONLY WANT WHAT
THEY KNOW"
D.
HAVE A SALES ORIENTATION
E.
EMPOWER THE CONSUMER
ANS: A
A MARKET-ORIENTED FIRM DEFINES ITS BUSINESS IN TERMS OF THE BENEFITS ITS CUSTOMERS
SEEK. BECAUSE OF THE LIMITED WAY BRITANNICA DEFINED ITS BUSINESS, IT MISSED AN
OPPORTUNITY TO DEFINE ITSELF IN TERMS OF THE BENEFITS CUSTOMERS WERE SEEKING.
PTS: 1
REF: 13
OBJ: 01-3
TOP: AACSB REFLECTIVE
THINKING
KEY: CB&E MODEL STRATEGY
MSC: BLOOMS LEVEL III APPLICATION
83. WALKER FARMS HAS HEARD FROM MANY OF ITS CUSTOMERS THAT THEY WOULD LIKE ORGANIC
PRODUCE. AS A RESULT, WALKER FARMS BECAME A CERTIFIED ORGANIC FARM. WALKER
REALIZES THAT, WHILE NOT ALL CONSUMERS ARE WILLING TO PAY THE HIGHER PRICES FOR
ORGANIC PRODUCE, HIS CUSTOMERS WANT THE ORGANIC PRODUCE. WALKER REALIZED:
A.
HE MISSED SALES BY NOT CONCENTRATING
ON THE AVERAGE CUSTOMER
B.
DIFFERENT CUSTOMER GROUPS HAVE
DIFFERENT NEEDS AND WANTS
C.
HE IS A SALES-ORIENTED FARM
D.
HIS BUSINESS IS ABOUT SELLING THE
CHEAPEST VEGETABLES
E.
HIS AIM IS A GOAL OF PROFIT THROUGH
MAXIMUM SALES VOLUME
ANS: B
ONE WAY TO IMPLEMENT THE MARKETING CONCEPT IS TO CONCENTRATE ON THE NEEDS OF
SPECIFIC GROUPS OF CUSTOMERS.
PTS: 1
REF: 13-14
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
84. A MARKET-ORIENTED ORGANIZATION TARGETS ITS PRODUCTS AT:
A.
THE “AVERAGE CUSTOMER”
B.
THE “LOYAL CUSTOMER”
C.
EVERYBODY
D.
SPECIFIC GROUPS OF PEOPLE
E.
THE TOTAL MARKET
ANS: D
MARKET-ORIENTED ORGANIZATIONS TARGET THEIR PRODUCTS AT SPECIFIC GROUPS OF PEOPLE.
BY CONTRAST, SDALES-ORIENTED ORGANIZATIONS TARGET THEIR PRODUCTS AT “EVERYBODY”
OR “THE AVERAGE CUSTOMER.”
PTS: 1
REF: 14
OBJ: 01-3
TOP: AACSB REFLECTIVE
THINKING
KEY: CB&E MODEL DISTRIBUTION | CB&E MODEL PRICING | CB&E MODEL PRODUCT |
CB&E MODEL PROMOTION MSC:
BLOOMS LEVEL VI EVALUATION
85. ONE WAY TO IDENTIFY THE ORIENTATION OF A FIRM IS TO EXAMINE ITS PRIMARY GOAL. IF A
FIRM SEEKS TO ACHIEVE PROFITABILITY THROUGH SALES VOLUME, IT WOULD PROBABLY BE:
A.
PROMOTION-ORIENTED
B.
PRICE-ORIENTED
C.
SALES-ORIENTED
D.
PRODUCTION-ORIENTED
E.
RETAIL-ORIENTED
ANS: C
A SALES-ORIENTED ORGANIZATION SEEKS TO ACHIEVE PROFITABILITY THROUGH SALES VOLUME
AND TRIES TO CONVINCE POTENTIAL CUSTOMERS TO BUY.
PTS: 1
REF: 15
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL IV ANALYSIS
86. THE OWNER OF MAINE KITCHEN ART BOWLS, SPOONS, AND CUTTING BOARDS KNOWS
MARKETING CAN MAKE HIS COMPANY A SUCCESS. HE WANTS TO RELY SOLELY ON PROMOTION
AS THE TECHNIQUE FOR ATTRACTING CUSTOMERS. HE ADVERTISES EXTENSIVELY IN COOKING
MAGAZINES AND PROVIDES RETAILERS WHO CARRY HIS PRODUCT WITH ATTRACTIVE DISPLAYS.
FROM THIS INFORMATION, YOU KNOW THAT MAINE KITCHEN ART HAS A _____ ORIENTATION.
A.
MARKET
B.
SOCIETAL
C.
PRODUCTION
D.
SALES
E.
PRODUCT
ANS: D
A SALES-ORIENTED ORGANIZATION VIEWS PROMOTIONS AS THE PRIMARY TOOL USED TO
ACHIEVE ITS GOALS.
PTS: 1
REF: 15
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
87. FUJIFILM COMPUTER PRODUCTS HAS IMPROVED THE EFFICIENCY AND PRODUCTIVITY OF ITS
PLANT, WHICH MANUFACTURES PRINTING TECHNOLOGY. FOR THE NEW FISCAL YEAR, THE
COMPANY PROJECTS A PRODUCTION INCREASE OF 25 PERCENT AND HAS INSTRUCTED ITS SALES
FORCE TO AGGRESSIVELY DISTRIBUTE AND PROMOTE THE PRODUCT. THE CEO IS SURE THE
MARKET WILL ABSORB MORE PRODUCT IF THE SALES FORCE IS DETERMINED AND ASSERTIVE.
APPARENTLY FUJIFILM:
A.
HAS AN OUTWARD ORGANIZATIONAL FOCUS
ON ITS CUSTOMERS WANTS AND PREFERENCES
B.
SEEKS ITS GOALS PRIMARILY THROUGH THE
USE OF INTENSIVE PROMOTION
C.
DIRECTS ITS PRODUCTS TO SPECIFIC GROUPS
OF PEOPLE
D.
IS IN THE BUSINESS OF SATISFYING
CUSTOMERS
E.
PROFITS THROUGH CUSTOMER SATISFACTION
ANS: B
FUJIFILM DEFINITELY HAS A SALES ORIENTATION. SEE REVIEW LEARNING OUTCOME 3 FOR A
DIAGRAM SHOWING THE DIFFERENCES BETWEEN A MARKET ORIENTATION AND A SALES
ORIENTATION.
PTS: 1
THINKING
REF: 15
OBJ: 01-3
TOP: AACSB REFLECTIVE
KEY: CB&E MODEL STRATEGY
MSC: BLOOMS LEVEL III APPLICATION
88. A SALES-ORIENTED ORGANIZATION SEEKS TO ACHIEVE PROFITABILITY THROUGH:
A.
THE DEVELOPMENT OF LONG-TERM
RELATIONSHIPS WITH CUSTOMERS
B.
SALES VOLUME
C.
PROVIDING CUSTOMER SATISFACTION
D.
CREATING CUSTOMER VALUE
E.
ALL OF THESE
ANS: B
A SALES-ORIENTED ORGANIZATION SEEKS TO GENERATE SALES VOLUME BASED UPON INTENSIVE
PROMOTIONAL ACTIVITIES.
PTS: 1
REF: 15
THINKING
KEY: CB&E MODEL PROMOTION
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
89. ALL OF THE FOLLOWING ARE GOOD REASONS TO STUDY MARKETING EXCEPT:
A.
MARKETING CREATES CONSUMER NEEDS.
B.
MARKETING PLAYS AN IMPORTANT ROLE IN
SOCIETY.
C.
MARKETING IS IMPORTANT TO BUSINESS.
D.
MARKETING OFFERS OUTSTANDING CAREER
OPPORTUNITIES.
E.
MARKETING AFFECTS YOUR LIFE EVERY DAY.
ANS: A
MARKETING MAY CREATE CONSUMER WANTS, BUT IT DOES NOT CREATE CONSUMER NEEDS.
PTS: 1
REF: 16
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-4
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL VI EVALUATION
90. WHAT PERCENTAGE OF THE CIVILIAN WORKFORCE IN THE UNITED STATES PERFORMS
MARKETING ACTIVITIES?
A.
ABOUT 10 PERCENT
B.
LESS THAN 25 PERCENT
C.
BETWEEN 25 AND 33 PERCENT
D.
ALMOST 50 PERCENT
E.
MORE THAN 75 PERCENT
ANS: C
BETWEEN A FOURTH AND A THIRD OF THE ENTIRE CIVILIAN WORKFORCE IN THE UNITED STATES
PERFORMS MARKETING ACTIVITIES.
PTS: 1
REF: 16
KEY: CB&E MODEL STRATEGY
OBJ: 01-4
TOP: AACSB ANALYTIC
MSC: BLOOMS LEVEL II COMPREHENSION
91. MARTINA SPENT $30 AT THE GROCERY STORE THIS AFTERNOON. ABOUT HOW MUCH OF THAT
SUM PAID FOR MARKETING COSTS?
A.
B.
C.
D.
E.
$3.00
$7.00
$10.00
$15.00
$25.00
ANS: D
ABOUT HALF OF EVERY DOLLAR YOU SPEND PAYS FOR MARKETING COSTS, SUCH AS MARKETING
RESEARCH, PRODUCT DEVELOPMENT, PACKAGING, TRANSPORTATION, STORAGE, ADVERTISING,
AND SALES EXPENSES.
PTS: 1
REF: 17
KEY: CB&E MODEL STRATEGY
OBJ: 01-4
TOP: AACSB ANALYTIC
MSC: BLOOMS LEVEL II COMPREHENSION
ACCORDING TO HARLEY-DAVIDSON MANAGEMENT, THE COMPANY DOES NOT SELL
MOTORCYCLES OR RIDING GEAR. INSTEAD, ACCORDING TO H-D’S MISSION STATEMENT, THE
COMPANY IS IN THE BUSINESS OF “FULFILLING DREAMS.” OVER THE YEARS, H-D HAS DEVELOPED
A BUSINESS CULTURE THAT IT DESCRIBES AS "HARLEYNESS." PROSPECTIVE EMPLOYEES ARE
SCREENED TO DETERMINE IF THEY HAVE THE CULTURAL FIT. THE COMPANY ENCOURAGES
EMPLOYEES TO OWN AND USE THE SAME TYPES OF MOTORCYCLES USED BY CUSTOMERS. HARLEY
PEOPLE RIDE THEIR BIKES TO WORK AND SPEND VACATIONS TOURING AND ATTENDING RALLIES
WITH FELLOW HARLEY RIDERS. MAINTAINING A STRONG RELATIONSHIP WITH CUSTOMERS IS
ENGRAINED IN H-D CULTURE. WHEN A PERSON BUYS A HARLEY-DAVIDSON MOTORCYCLE, HE
OR SHE RECEIVES A FREE 1-YEAR MEMBERSHIP TO THE HARLEY OWNERS GROUP (HOG), WHICH
WAS DEVELOPED IN 1983 AS A PROGRAM TO KEEP PEOPLE ACTIVE WITH THEIR HARLEY.
SIMULTANEOUSLY, IT KEEPS THE COMPANY CLOSE TO ITS CUSTOMER. THROUGH HOG, THE
COMPANY SUPPORTS RALLIES, CLUB MEETINGS, AND WEEKEND PARTIES FEATURING FREE FOOD
AND DRINK. H-D EXECUTIVES ROUTINELY ATTEND BIKE RALLIES ACROSS THE COUNTRY TO STAY
IN TOUCH WITH HARLEY-DAVIDSON CUSTOMERS AND ENTHUSIASTS. H-D EMPLOYEES WANT TO
HEAR FIRST-HAND FROM FELLOW RIDERS ABOUT GREAT RIDING EXPERIENCES—OR PROBLEMS—
THEY MIGHT HAVE HAD. AND THEY’RE ABLE TO TELL THOSE RIDERS, “I KNOW WHAT YOU
MEAN.” BECAUSE THOSE EMPLOYEES ARE RIDERS TOO.
92. REFER TO HARLEY-DAVIDSON. THE COMPANY MISSION STATEMENT INDICATES THAT WHICH
MARKETING MANAGEMENT PHILOSOPHY IS EMBRACED BY THIS COMPANY?
A.
SALES ORIENTATION
B.
MARKET ORIENTATION
C.
PRODUCTION ORIENTATION
D.
SOCIETAL MARKETING ORIENTATION
E.
PROMOTIONAL ORIENTATION
ANS: B
A MARKET ORIENTATION IS A PHILOSOPHY THAT ASSUMES THAT A SALE DOES NOT DEPEND ON
AN AGGRESSIVE SALES FORCE BUT RATHER ON A CUSTOMER’S DECISION TO PURCHASE A
PRODUCT.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
93. REFER TO HARLEY-DAVIDSON. HARLEY-DAVIDSON’S CUSTOMER-DRIVEN APPROACH EMBODIES
AN ORGANIZATION-WIDE COMMITMENT TO SERVICE AND SUPPORT SO THAT CUSTOMERS ATTAIN
BENEFITS RELATIVE TO THE PRICE THEY PAY FOR THE PRODUCT. WHICH ELEMENT OF AN
ORGANIZATION’S FOCUS IS THIS COMMITMENT SATISFYING?
A.
EMPOWERMENT
B.
CUSTOMER VALUE
C.
CUSTOMER ACQUISITION
D.
CREATIVITY
E.
PRIMARY GOAL MAKING
ANS: B
CUSTOMER VALUE IS THE RELATIONSHIP BETWEEN BENEFITS AND THE SACRIFICE NECESSARY TO
OBTAIN THOSE BENEFITS.
PTS: 1
REF: 9
KEY: CB&E MODEL CUSTOMER
OBJ: 01-3
TOP: AACSB ANALYTIC
MSC: BLOOMS LEVEL III APPLICATION
94. REFER TO HARLEY-DAVIDSON. CUSTOMER-ORIENTED PERSONNEL WHO RIDE THE PRODUCTS
THEY MAKE AND SELL, SPONSORSHIP OF MOTORCYCLE CLUBS AND PARTIES, AND EMPLOYEE
ATTENDANCE AT BIKE RALLIES ALL WORK TOGETHER AT HARLEY-DAVIDSON TO IMPLEMENT
WHICH TYPE OF STRATEGY?
A.
RELATIONSHIP MARKETING
B.
SOCIAL MARKETING
C.
INTERNAL MARKETING
D.
EXTERNAL MARKETING
E.
EMPOWERED MARKETING
ANS: A
MOST SUCCESSFUL RELATIONSHIP MARKETING STRATEGIES DEPEND ON CLOSE CONTACT WITH
CUSTOMERS.
PTS: 1
REF: 10-11
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
95. REFER TO HARLEY-DAVIDSON. A HARLEY-DAVIDSON RIDER ATTENDING A BIKE RALLY IN
STURGIS, SOUTH DAKOTA APPROACHED AN H-D EMPLOYEE WITH A COMPLAINT ABOUT A
DEFECTIVE ENGINE PART. THE H-D EMPLOYEE IMMEDIATELY MADE ARRANGEMENTS FOR THE
PART TO BE SHIPPED TO THE RALLY AT NO CHARGE TO THE CUSTOMER. THE FACT THAT H-D
EMPLOYEES HAVE THE AUTHORITY TO SOLVE CUSTOMERS’ PROBLEMS QUICKLY ILLUSTRATES
THAT THESE EMPLOYEES ARE GIVEN:
A.
AUTHORITY TRAINING
B.
CUSTOMER VALUE GIVING
C.
CROSS-UTILIZATION
D.
TEAMWORK
E.
EMPOWERMENT
ANS: E
EMPOWERMENT IS THE DELEGATION OF AUTHORITY TO EMPLOYEES TO SOLVE CUSTOMERS’
PROBLEMS QUICKLY, USUALLY BY THE FIRST PERSON THAT THE CUSTOMER NOTIFIES REGARDING
A PROBLEM.
PTS: 1
REF: 12
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
96. REFER TO HARLEY-DAVIDSON. BASED ON THE DESCRIPTION OF THE COMPANY, HARLEYDAVIDSON MOST LIKELY DOES ALL OF THE FOLLOWING EXCEPT:
A.
SEEK TO ACHIEVE PROFITABILITY THROUGH
SALES VOLUME
B.
HOPE TO BUILD LONG-TERM RELATIONSHIPS
WITH CUSTOMERS
C.
DEFINE ITS BUSINESS IN TERMS OF THE
BENEFITS ITS CUSTOMERS WANT
D.
UNDERSTAND THAT DIFFERENT CUSTOMER
GROUPS WANT DIFFERENT THINGS
E.
RECOGNIZE THAT MARKETING IS NOT JUST A
RESPONSIBILITY OF THE MARKETING
DEPARTMENT
ANS: A
SALES-ORIENTED ORGANIZATIONS SEEK TO ACHIEVE PROFITABILITY THROUGH SALES VOLUME.
MARKET-ORIENTED ORGANIZATIONS SUCH AS H-D HOPE TO BUILD LONG-TERM RELATIONSHIPS
WITH CUSTOMERS, DEFINE THEIR BUSINESSES IN TERMS OF THE BENEFITS CUSTOMERS WANT,
RECOGNIZE THAT DIFFERENT CUSTOMER GROUPS WANT DIFFERENT BENEFITS, AND UNDERSTAND
THAT MARKETING IS NOT JUST A RESPONSIBILITY OF THE MARKETING DEPARTMENT.
PTS: 1
REF: 13-15
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
THE FIRST STARBUCKS OPENED IN 1970 IN SEATTLE WASHINGTON. THE DEMAND FOR ITS
COFFEE GREW AND STARBUCKS ADDED MORE THAN 6,000 STORES LOCATED IN OVER 30
COUNTRIES. IN ITS MORE THAN 30 YEAR HISTORY, STARBUCKS HAS NEVER GIVEN OUT COUPONS
FOR ITS COFFEE. STARBUCKS HAD ONLY TO MAKE ITS COFFEE AND CUSTOMERS CAME. RECENTLY
CONSUMER QUALITY PERCEPTION OF THE STARBUCKS BRAND HAS STARTED TO FALL.
STARBUCKS STARTED A CONSUMER-RESPONSE BLOG TO LEARN MORE ABOUT WHAT CONSUMERS
EXPECT FROM STARBUCKS. ONE OF THE MOST REQUESTS WAS FOR A CUSTOMER REWARDS
PROGRAM. IN RESPONSE STARBUCKS HAS STARTED THE MY STARBUCKS REWARDS, WHICH
OFFERS FREE REFILLS ON BREWED COFFEE, FREE BEVERAGE WITH WHOLE BEAN PURCHASE,
BEVERAGE CUSTOMIZATION AND FREE WI-FI. STARBUCKS ALSO PUT COUPONS IN A NATIONAL
NEWSPAPER FOR THOSE CONSUMERS WHO LOVE COUPONS AND CREATED A NEW BREW OF COFFEE
FOR THOSE WHO PREFER A MILDER COFFEE TASTE. STARBUCKS IS HOPING WITH THESE
IMPROVEMENTS WILL RESTORE CUSTOMERS’ LOYALTY AND CONFIDENCE.
97. REFER TO STARBUCKS. WHICH OF THE FOUR CONDITIONS DID NOT EXIST IN THE MINDS OF THE
STARBUCKS CONSUMER, RESULTING IN DECLINING SALES?
A.
EACH PARTY HAS SOMETHING OF VALUE TO
THE OTHER PARTY
B.
EACH PARTY IS CAPABLE OF
COMMUNICATION AND DELIVERY
C.
EACH PARTY IS FREE TO ACCEPT OR REJECT
THE EXCHANGE OFFER
D.
EACH PARTY BELIEVES IT IS APPROPRIATE OR
DESIRABLE TO DEAL WITH THE OTHER PARTY
E.
THERE MUST BE AT LEAST TWO PARTIES FOR
EXCHANGE TO OCCUR
ANS: A
STARBUCKS CUSTOMERS WERE NOT SEEING THE VALUE OF EXCHANGING THEIR MONEY FOR
STARBUCKS PRODUCTS.
PTS: 1
REF: 3-4
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 01-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
98. REFER TO STARBUCKS. FOR MORE THAN THIRTY YEARS STARBUCKS HELD THE ORIENTATION OF
“IF WE BUILD IT, THEY WILL COME.” THIS PHILOSOPHY IS MOST IN LINE WITH A _____
ORIENTATION.
A.
SALES
B.
MARKET
C.
PRODUCTION
D.
SOCIETAL MARKETING
E.
PRODUCT
ANS: C
A PRODUCTION ORIENTATION MEANS THAT MANAGEMENT ASKS “WHAT DO WE DO BEST?”
STARBUCKS CASE MADE GREAT COFFEE AND CREATED AN ATMOSPHERE WHERE PEOPLE WANTED
TO SPEND TIME AND MONEY.
PTS: 1
REF: 4
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
99. REFER TO STARBUCKS. STARBUCKS CUSTOMERS WANTED MORE VALUE FROM THEIR COFFEE.
STARBUCKS MANAGEMENT RESPONDED TO CUSTOMERS THROUGH THE STARBUCKS CARD
REWARDS PROGRAM. WHICH ELEMENT OF VALUE WAS STARBUCKS MANAGEMENT WORKING TO
INCREASE?
A.
PRODUCTS THAT PERFORM
B.
EARNING TRUST
C.
AVOIDING UNREALISTIC PRICING
D.
GIVING THE BUYER FACTS
E.
CO-CREATION
ANS: B
IN ORDER FOR STARBUCKS TO CONTINUE TO GROW AND PROSPER IT NEEDED TO KEEP ITS STABLE
BASE OF LOYAL CUSTOMERS HAPPY.
PTS: 1
REF: 9-10
OBJ: 01-3
TOP: AACSB REFLECTIVE
THINKING
KEY: CB&E MODEL STRATEGY
MSC: BLOOMS LEVEL III APPLICATION
100. REFER TO STARBUCKS. THE CREATION OF A CONSUMER-RESPONSE BLOG IS AN EXAMPLE OF
_____.
A.
HOW TO INCREASE SALES
B.
TECHNOLOGY AT ITS BEST
C.
RELATIONSHIP MARKETING
D.
GOOD TRAINING
E.
PRODUCT IMPROVEMENTS
ANS: C
RELATIONSHIP MARKETING IS A STRATEGY THAT FOCUSES IN KEEPING AND IMPROVING
RELATIONSHIPS WITH CURRENT CUSTOMERS.
PTS: 1
REF: 10
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
101. REFER TO STARBUCKS. THE FACT THAT MANAGEMENT REALIZED THAT COFFEE DRINKERS HAD
DIFFERENT NEEDS WHETHER BE USING COUPONS, WANTING A MILDER BREW OF COFFEE OR FREE
WI-FI SHOWS THAT STARBUCKS IS NOW USING A _____-ORIENTED APPROACH.
A.
SALES
B.
MARKET
C.
PRODUCTION
D.
SOCIETAL MARKETING
E.
PRODUCT
ANS: B
A MARKET-ORIENTED ORGANIZATION RECOGNIZES THAT DIFFERENT CONSUMER GROUPS WANT
DIFFERENT FEATURES OR BENEFITS.
PTS: 1
REF: 14
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
AS RECENTLY AS 20 YEARS AGO CIRCUSES CAME TO TOWN WITH TENTS, ANIMALS, CLOWNS, AND
OTHER PERFORMERS. AN ADVANCE MAN ARRIVED ABOUT TWO WEEKS BEFORE THE CIRCUS
ACTUALLY ARRIVED, COVERED THE COMMUNITY WITH POSTERS, AND GAVE OUT FREE TICKETS
TO SCHOOLCHILDREN. IF THE ADVANCE MAN HAD DONE A GOOD JOB, WHEN THE CIRCUS ARRIVED
AND OPENED ITS TENT DOORS, 300 TO 600 PEOPLE WOULD FILL ITS SEATS. WHEN THE LARGEST
CIRCUS ORGANIZATIONS MERGED, THE NEWLY FORMED RINGLING BROS. AND BARNUM &
BAILEY'S GREATEST SHOW ON EARTH BEGAN PERFORMING IN 4,000-SEAT ARENAS.
ATTENDANCE, HOWEVER, HAS STAGNATED IN RECENT YEARS. PEOPLE HAVE STOPPED GOING TO
THE CIRCUS BECAUSE THEY MISS THE CIRCUS TENT AND THE CLOSE INTIMATE ATMOSPHERE IT
CREATED. THE NEWEST THING IN CIRCUSES IS A RETURN TO THE TENT ATMOSPHERE WITH AN
EMPHASIS ON THE TYPES OF ENTERTAINMENT THAT WERE POPULAR YEARS AGO. ANTIQUE
CIRCUS WAGONS, CALLIOPE MUSIC, AND COTTON CANDY ARE REPLACING THE EXOTIC ANIMALS
AND THE PRIMA DONNA PERFORMERS. TO SATISFY THE NEEDS OF THIS NEW AUDIENCE, THE TENT
CIRCUS NOW SELLS LATTES AND WINE.
102. REFER TO CIRCUSES. THE AGGRESSIVE PROMOTIONS USED BY ADVANCE MEN INDICATE THAT
DECADES AGO THE CIRCUSES PROBABLY HAD A _____ ORIENTATION.
A.
SALES
B.
MARKET
C.
PRODUCTION
D.
SOCIETAL MARKETING
E.
PRODUCT
ANS: A
SALES-ORIENTED ORGANIZATIONS ACHIEVE THEIR SALES GOALS PRIMARILY THROUGH
INTENSIVE PROMOTION.
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
103. REFER TO CIRCUSES. NOW CIRCUSES ARE TRYING TO SATISFY CUSTOMERS' NEEDS AND WANTS
AND TO PROFIT THROUGH CUSTOMER SATISFACTION. THEY HAVE ADOPTED A _____
ORIENTATION.
A.
SOCIETAL MARKETING
B.
SELLING
C.
PRODUCTION
D.
MARKET
E.
RETAIL
ANS: D
A MARKET-ORIENTED PHILOSOPHY IS BASED ON CONSUMERS’ WANTS AND NEEDS
PTS: 1
REF: 5
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
104. REFER TO CIRCUSES. TO EXHIBIT A SOCIETAL MARKETING ORIENTATION, CIRCUSES COULD:
A.
RELY ON PUBLICITY AND AVOID ANY
PROMOTIONS
B.
EMPOWER THEIR EMPLOYEES TO SATISFY
CUSTOMER WANTS
C.
DONATE A PERCENTAGE OF THEIR PROFITS TO
LOCAL EDUCATIONAL INSTITUTIONS
D.
USE RELATIONSHIP MARKETING
E.
EMPHASIZE CUSTOMER VALUE
ANS: C
THE PHILOSOPHY CALLED THE SOCIETAL MARKETING ORIENTATION STATES THAT AN
ORGANIZATION EXISTS NOT ONLY TO SATISFY CUSTOMER WANTS AND NEEDS AND TO MEET
ORGANIZATIONAL OBJECTIVES BUT ALSO TO PRESERVE OR ENHANCE INDIVIDUALS' AND
SOCIETY'S LONG-TERM BEST INTERESTS.
PTS: 1
REF: 6
OBJ: 01-2
TOP: AACSB REFLECTIVE
THINKING
KEY: CB&E MODEL STRATEGY
MSC: BLOOMS LEVEL III APPLICATION
105. REFER TO CIRCUSES. ONE OF THE TENT VENUES IS CALLED BARNUM'S KALEIDOSCOPE, AND IT IS
IN A PERMANENT LOCATION WITH THE HOPES THAT PEOPLE WHO SEE THE SHOW WILL WANT TO
RETURN AND SEE IT AGAIN AS WELL AS BRING THEIR FRIENDS AND RELATIVES TO THE
PRODUCTION. WHICH OF THE FOLLOWING TECHNIQUES WOULD MOST LIKELY ADVANCE THIS
STRATEGY OF REFERRALS AND REPEAT BUSINESS?
A.
B.
C.
D.
E.
RELATIONSHIP MARKETING
EMPOWERMENT
SALES ORIENTATION
AUTHORITY TO DELEGATE
TRANSACTIONAL MARKETING
ANS: A
RELATIONSHIP MARKETING IS A STRATEGY THAT ENTAILS FORGING LONG-TERM PARTNERSHIPS
WITH CUSTOMERS.
PTS: 1
REF: 10
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
106. REFER TO CIRCUSES. THE CIRCUS'S GOAL OF REDESIGNING THE CIRCUS EXPERIENCE IS BEING
COMPLETED THROUGH THE COORDINATION OF MANY MARKETING ACTIVITIES, SUCH AS VALUE
PRICING, A PRODUCT THAT INCLUDES EXCITING PERFORMANCES, TENT VENUE LOCATIONS, AND
PROMOTION. THESE ACTIVITIES MAKE UP THE _____ FOR THE CIRCUSES.
A.
OPPORTUNITY ANALYSIS
B.
VALUE OF MARKETING
C.
MARKETING ENVIRONMENT
D.
TARGET MARKET
E.
MARKETING MIX
ANS: E
MARKETING MIX ELEMENTS INCLUDE PRODUCT, PLACE, PROMOTION, AND PRICE.
PTS: 1
REF: 15
OBJ: 01-3
TOP: AACSB REFLECTIVE
THINKING
KEY: CB&E MODEL PRODUCT | CB&E MODEL DISTRIBUTION | CB&E MODEL PRICING |
CB&E MODEL PROMOTION MSC:
BLOOMS LEVEL III APPLICATION
ESSAY
1. EXPLAIN HOW MARKETING IS BOTH A PHILOSOPHY AND A SET OF ACTIVITIES.
ANS:
THE FIRST FACET OF MARKETING IS ITS PHILOSOPHY. THIS PHILOSOPHY IS AN ATTITUDE,
PERSPECTIVE, OR MANAGEMENT ORIENTATION THAT STRESSES THE IMPORTANCE OF CUSTOMER
SATISFACTION.
THE SECOND FACET OF MARKETING IS THE SET OF ACTIVITIES USED TO IMPLEMENT THIS
PHILOSOPHY. THESE ACTIVITIES INCLUDE (BUT ARE NOT LIMITED TO) PLANNING, PRICING,
PROMOTION, DISTRIBUTION, SELLING, ADVERTISING, AND INVENTORY MANAGEMENT.
PTS: 1
REF: 2
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 01-1
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
2. WHAT IS THE AMERICAN MARKETING ASSOCIATION’S (AMA) DEFINITION OF MARKETING AND
WHAT DOES MARKETING ENTAIL?
ANS:
ACCORDING TO THE AMA, MARKETING IS THE ACTIVITY, SET OF INSTITUTIONS, AND PROCESSES
FOR CREATING, COMMUNICATING, DELIVERING, AND EXCHANGING OFFERINGS THAT HAVE
VALUE FOR CUSTOMERS, CLIENTS, PARTNERS, AND SOCIETY AT LARGE. MARKETING ENTAILS
THE PROCESSES THAT FOCUS ON DELIVERING VALUE AND BENEFITS TO CUSTOMERS, NOT JUST
SELLING GOODS, SERVICES, AND IDEAS.
PTS: 1
REF: 3
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 01-1
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
3. DESCRIBE THE CONCEPT OF EXCHANGE, AND LIST THE FIVE CONDITIONS THAT MUST BE
SATISFIED FOR EXCHANGE TO OCCUR. IF ALL CONDITIONS ARE MET, DOES THAT GUARANTEE
EXCHANGE WILL OCCUR? EXPLAIN WHY OR WHY NOT.
ANS:
THE CONCEPT OF EXCHANGE SIMPLY MEANS THAT PEOPLE GIVE UP SOMETHING IN ORDER TO
RECEIVE SOMETHING THAT THEY WOULD RATHER HAVE. MONEY, GOODS, OR SERVICES MAY BE
THE MEDIUM OF EXCHANGE. THE FIVE CONDITIONS OF EXCHANGE ARE:
1. THERE MUST BE AT LEAST TWO PARTIES.
2. EACH PARTY HAS SOMETHING THAT MIGHT BE OF VALUE TO THE OTHER PARTY.
3. EACH PARTY IS CAPABLE OF COMMUNICATION AND DELIVERY.
4. EACH PARTY IS FREE TO ACCEPT OF REJECT THE EXCHANGE OFFER.
5. EACH PARTY BELIEVES IT IS APPROPRIATE OR DESIRABLE TO DEAL WITH THE OTHER PARTY.
EXCHANGE WILL NOT NECESSARILY TAKE PLACE EVEN IF ALL THESE CONDITIONS EXIST. THEY
ARE NECESSARY FOR EXCHANGE TO BE POSSIBLE, BUT UNLESS THE BUYER AND SELLER REACH
AN AGREEMENT, AN EXCHANGE WILL NOT TAKE PLACE.
PTS: 1
REF: 3-4
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 01-1
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
4. NAME AND DESCRIBE THE FOUR MARKETING MANAGEMENT PHILOSOPHIES.
ANS:
PRODUCTION ORIENTATION. THIS ORIENTATION FOCUSES FIRMS ON THEIR INTERNAL
PRODUCTION CAPABILITIES RATHER THAN THE DESIRES AND NEEDS OF THE MARKETPLACE.
SALES ORIENTATION. THIS ORIENTATION ASSUMES THAT BUYERS WILL PURCHASE MORE OF
ANY ITEM IF AGGRESSIVE SELLING TECHNIQUES ARE USED. AGAIN, THIS ORIENTATION DOES NOT
ADDRESS THE NEEDS AND WANTS OF THE MARKETPLACE.
MARKET ORIENTATION. THIS ORIENTATION IS THE FOUNDATION OF CONTEMPORARY
MARKETING PHILOSOPHY. IT RECOGNIZES THAT A SALE IS DEPENDENT ON THE CUSTOMER'S
DECISION TO PURCHASE A PRODUCT AND PROVIDES INCREASED RESPONSIVENESS TO CUSTOMER
NEEDS AND WANTS. TO MARKET-ORIENTED FIRMS, MARKETING MEANS BUILDING RELATIONSHIPS
WITH CUSTOMERS.
SOCIETAL MARKETING ORIENTATION. THIS ORIENTATION REFINES THE MARKETING
ORIENTATION BY STATING THAT THE SOCIAL AND ECONOMIC JUSTIFICATION FOR AN
ORGANIZATION'S EXISTENCE IS THE SATISFACTION OF CUSTOMER WANTS AND NEEDS WHILE
MEETING THE ORGANIZATION'S OBJECTIVES AND PRESERVING OR ENHANCING BOTH
INDIVIDUALS' AND SOCIETY'S LONG-TERM BEST INTERESTS.
PTS: 1
REF: 4-7
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
5. WHAT IS THE MARKETING CONCEPT? ACCORDING TO THE MARKETING CONCEPT, WHAT
DETERMINES IF A SALE WILL ACTUALLY OCCUR?
ANS:
THE MARKETING CONCEPT IS A SIMPLE AND INTUITIVELY APPEALING PHILOSOPHY. IT STATES
THAT THE SOCIAL AND ECONOMIC JUSTIFICATION FOR AN ORGANIZATION'S EXISTENCE IS THE
SATISFACTION OF CUSTOMER WANTS AND NEEDS WHILE MEETING ORGANIZATIONAL OBJECTIVES.
IT IS BASED ON AN UNDERSTANDING THAT A SALE DOES NOT DEPEND ON AN AGGRESSIVE SALES
FORCE, BUT RATHER ON A CUSTOMER'S DECISION TO PURCHASE A PRODUCT.
PTS: 1
REF: 5
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB ANALYTIC
MSC: BLOOMS LEVEL V SYNTHESIS
6. WHAT IS THE FUNDAMENTAL PROBLEM WITH A SALES ORIENTATION? EXPLAIN YOUR ANSWER.
ANS:
THE FUNDAMENTAL PROBLEM WITH A SALES ORIENTATION IS A LACK OF UNDERSTANDING OF
THE NEEDS AND WANTS OF THE MARKETPLACE. THEY SIMPLY FAIL TO UNDERSTAND WHAT IS
IMPORTANT TO THEIR CUSTOMERS. SUCH FIRMS OFTEN FIND THAT, DESPITE THE QUALITY OF
THEIR SALES FORCE, THE CANNOT CONVINCE PEOPLE TO BUY GOODS OR SERVICES THAT ARE
NEITHER WANTED NOR NEEDED.
PTS: 1
REF: 5
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
7. AN ENTREPRENEUR HAS SET UP A COMPANY TO MANUFACTURE AND MARKET GPS SYSTEMS FOR
HUNTERS. HE HAS DECIDED A SALES ORIENTATION WOULD BEST SUIT HIS NEW COMPANY. WHAT
ARE IMPORTANT CONSIDERATIONS FOR THIS FIRM WHEN IT ADOPTS THIS ORIENTATION? WHAT
ARE POTENTIAL PITFALLS OF THIS ORIENTATION THE OWNER NEEDS TO UNDERSTAND?
ANS:
THE MOST IMPORTANT COMPONENT FOR A SALES ORIENTATION IS AN AGGRESSIVE SALES FORCE.
THE SALES FORCE CAN PUSH INTERMEDIARIES TO CARRY PRODUCTS, OR PUSH CONSUMERS TO
PURCHASE. FOR THE ENTREPRENEUR IN QUESTION, THIS IS IMPORTANT, AS HUNTERS RARELY BUY
GPS EQUIPMENT DIRECTLY FROM THE MANUFACTURER. INSTEAD, GPS EQUIPMENT IS OFFERED
THROUGH SPECIALTY RESELLERS. AN AGGRESSIVE SALES FORCE COULD HELP THE
ENTREPRENEUR SELL HIS PRODUCT IN MORE OUTLETS. HOWEVER, DESPITE A HIGH-QUALITY
SALES FORCE, EVEN AGGRESSIVE SALESPEOPLE CANNOT CONVINCE PEOPLE TO BUY GOODS AND
SERVICES THAT ARE NEITHER WANTED NOR NEEDED.
PTS: 1
REF: 5
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
8. EXPLAIN THE MARKETING CONCEPT AND MARKET ORIENTATION. WHAT THREE REQUIREMENTS
ARE NECESSARY TO IMPLEMENT A MARKET ORIENTATION?
ANS:
THE PHILOSOPHY OF THE MARKETING CONCEPT STATES THAT THE SOCIAL AND ECONOMIC
JUSTIFICATION FOR AN ORGANIZATION'S EXISTENCE IS THE SATISFACTION OF CUSTOMER WANTS
AND NEEDS WHILE MEETING ORGANIZATIONAL OBJECTIVES. MARKET ORIENTATION REQUIRES
TOP MANAGEMENT LEADERSHIP, A CUSTOMER FOCUS, COMPETITIVE INTELLIGENCE, AND
INTERFUNCTIONAL COORDINATION TO MEET CUSTOMER WANTS AND NEEDS AND DELIVER
SUPERIOR VALUE. IT ALSO ENTAILS ESTABLISHING AND MAINTAINING MUTUALLY REWARDING
RELATIONSHIPS WITH CUSTOMERS.
THE MARKETING CONCEPT AND MARKET ORIENTATION INVOLVE:
1. FOCUSING ON CONSUMER WANTS AND NEEDS SO THE ORGANIZATION CAN DISTINGUISH ITS
PRODUCT(S) FROM COMPETITORS' OFFERINGS,
2. INTEGRATING ALL THE ORGANIZATION’S ACTIVITIES, INCLUDING PRODUCTION, TO SATISFY
CUSTOMERS WANTS, AND
3. ACHIEVING LONG-TERM GOALS BY SATISFYING CUSTOMER WANTS AND NEEDS LEGALLY AND
RESPONSIBLY.
PTS: 1
REF: 5-6
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 01-2
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
9. EXPLAIN THE SOCIETAL MARKETING ORIENTATION, AND GIVE AN EXAMPLE OF A COMPANY
IMPLEMENTING THIS ORIENTATION.
ANS:
THE SOCIETAL MARKETING ORIENTATION IS THE IDEA THAT AN ORGANIZATION EXISTS NOT ONLY
TO SATISFY CUSTOMER WANTS AND NEEDS AND TO MEET ORGANIZATIONAL OBJECTIVES, BUT
ALSO TO PRESERVE OR ENHANCE INDIVIDUALS’ AND SOCIETY’S LONG-TERM BEST INTERESTS.
STUDENTS' EXAMPLES WILL VARY DEPENDING UPON WHAT COMMERCIALS, ADVERTISEMENTS,
AND PUBLICITY THEY HAVE BEEN EXPOSED TO. ALL SHOULD SELECT A COMPANY THAT EXISTS
NOT ONLY TO SATISFY CUSTOMERS' WANTS AND NEEDS AND TO MEET ORGANIZATIONAL
OBJECTIVES BUT ALSO TO PRESERVE OR ENHANCE INDIVIDUALS' OR SOCIETY'S LONG-TERM BEST
INTERESTS.
PTS: 1
REF: 6-7
OBJ: 01-2
TOP: AACSB COMMUNICATION | AACSB ETHICS
STRATEGY
MSC: BLOOMS LEVEL V SYNTHESIS
KEY: CB&E MODEL
10. WHAT IS CUSTOMER VALUE? WHAT ARE THE SIX WAYS MARKETERS CAN MAKE SURE
CUSTOMERS PERCEIVE THEIR COMPANIES/PRODUCTS AS SOURCES OF VALUE?
ANS:
CUSTOMER VALUE IS THE RELATIONSHIP BETWEEN BENEFITS AND THE SACRIFICE NECESSARY TO
OBTAIN THOSE BENEFITS. MARKETERS WHO WANT TO BE PERCEIVED BY THEIR CUSTOMERS AS
OFFERING VALUE CAN (1) OFFER PRODUCTS THAT PERFORM, (2) EARN TRUST, (3) AVOID
UNREALISTIC PRICING, (4) GIVE THE BUYER FACTS, (5) OFFER ORGANIZATION-WIDE
COMMITMENT IN SERVICE AND AFTER-SALES SUPPORT, AND (6) CO-CREATION.
PTS: 1
REF: 9-10
COMMUNICATION
KEY: CB&E MODEL CUSTOMER
OBJ: 01-3
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
11. COMPARE AND CONTRAST THE SALES AND MARKET ORIENTATIONS USING THE FOLLOWING FIVE
CHARACTERISTICS AS GUIDELINES: (1) ORGANIZATION'S FOCUS, (2) BUSINESS THE ORGANIZATION
IS IN, (3) PEOPLE TO WHOM THE PRODUCT IS DIRECTED, (4) THE ORGANIZATION'S PRIMARY GOAL,
AND (5) TOOLS USED TO ACHIEVE THAT GOAL.
ANS:
ORGANIZATION'S FOCUS. WITH A SALES ORIENTATION, THE FIRM'S FOCUS IS INWARD UPON
THE FIRM'S OWN NEEDS. WITH A MARKET ORIENTATION, THE FOCUS IS OUTWARD ON THE WANTS
AND PREFERENCES OF CUSTOMERS. IN PARTICULAR, MARKET-ORIENTED FIRMS CREATE
CUSTOMER VALUE, MAINTAIN CUSTOMER SATISFACTION, AND BUILD LONG-TERM
RELATIONSHIPS.
BUSINESS. A FIRM WITH A SALES ORIENTATION IS IN THE BUSINESS OF SELLING GOODS AND
SERVICES. A FIRM WITH A MARKET ORIENTATION IS IN THE BUSINESS OF SATISFYING CONSUMER
WANTS AND NEEDS.
CUSTOMERS. A SALES ORIENTATION DIRECTS THE FIRM'S OUTPUT AT EVERYBODY, WHILE A
MARKET ORIENTATION DIRECTS GOODS TOWARD SPECIFIC GROUPS OF PEOPLE.
PRIMARY GOAL. THE PRIMARY GOAL OF A FIRM WITH A SALES ORIENTATION IS TO MAKE
PROFIT THROUGH MAXIMIZING SALES VOLUME. THE PRIMARY GOAL OF A FIRM WITH A MARKET
ORIENTATION IS TO SEEK PROFIT THROUGH CUSTOMER SATISFACTION.
TOOLS FOR GOAL ACHIEVEMENT. A SALES ORIENTATION SEEKS TO ACHIEVE GOALS
PRIMARILY THROUGH INTENSIVE PROMOTION. A MARKET ORIENTATION ACHIEVES GOALS
THROUGH COORDINATED USE OF A SET OF MARKETING ACTIVITIES.
SEE REVIEW LEARNING OUTCOME 3.
PTS: 1
REF: 9-15
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
12. CONSIDER THE FOLLOWING STATEMENT: "RELATIONSHIP MARKETING IS NOT POSSIBLE IN A FIRM
EMBRACING A PRODUCTION ORIENTATION." DO YOU AGREE OR DISAGREE WITH THIS
STATEMENT? EXPLAIN YOUR ANSWER.
ANS:
A COMPANY WITH A PRODUCTION ORIENTATION CONCENTRATES ON WHAT IT CAN DO BEST--ITS
INTERNAL CAPABILITIES. SOMETIMES WHAT THE COMPANY PRODUCES IS EXACTLY WHAT THE
CUSTOMER WANTS, SO IT COULD BE POSSIBLE FOR A COMPANY TO ENGAGE IN RELATIONSHIP
MARKETING (A STRATEGY THAT ENTAILS FORGING LONG-TERM PARTNERSHIPS WITH
CUSTOMERS) AND STILL HAVE A PRODUCTION ORIENTATION. HOWEVER, THE MOST SUCCESSFUL
RELATIONSHIP MARKETING STRATEGIES DEPEND ON CUSTOMER-ORIENTED PERSONNEL,
EFFECTIVE TRAINING PROGRAMS, EMPLOYEES WITH AUTHORITY TO MAKE DECISIONS AND SOLVE
PROBLEMS, AND TEAMWORK.
PTS: 1
REF: 4 | 10-11
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 01-2 | 01-3
TOP: AACSB
MSC: BLOOMS LEVEL VI EVALUATION
13. DISCUSS THE ELEMENTS NEEDED TO IMPLEMENT SUCCESSFUL RELATIONSHIP MARKETING
STRATEGIES.
ANS:
MOST SUCCESSFUL RELATIONSHIP MARKETING STRATEGIES DEPEND ON:
CUSTOMER-ORIENTED PERSONNEL. AN EMPLOYEE MAY BE THE ONLY CONTACT A
CUSTOMER HAS WITH THE FIRM, SO IN THAT CUSTOMER’S EYES, THE EMPLOYEE IS THE FIRM.
ANY PERSON, DEPARTMENT, OR DIVISION THAT IS NOT CUSTOMER-ORIENTED WEAKENS THE
POSITIVE IMAGE OF THE ENTIRE ORGANIZATION.
TRAINING. TRAINING IS IMPORTANT TO IMPLEMENT THE OTHER ELEMENTS.
EMPOWERMENT. DELEGATION OF AUTHORITY TO SOLVE CUSTOMER PROBLEMS QUICKLY,
USUALLY BY THE FIRST PERSON THAT THE CUSTOMER NOTIFIES REGARDING A PROBLEM.
TEAMWORK. COLLABORATIVE EFFORTS OF PEOPLE TO ACCOMPLISH A COMMON OBJECTIVE.
JOB PERFORMANCE, COMPANY PERFORMANCE, PRODUCT VALUE, AND CUSTOMER SATISFACTION
ALL IMPROVE WHEN PEOPLE IN THE SAME DEPARTMENT OR WORK GROUP BEGIN SUPPORTING
AND ASSISTING EACH OTHER AND EMPHASIZE COOPERATION INSTEAD OF COMPETITION.
PTS: 1
REF: 10-13
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
14. LIST THE THREE ADVANTAGES OF DEFINING THE COMPANY'S BUSINESS IN TERMS OF THE
BENEFITS CUSTOMERS SEEK INSTEAD OF IN TERMS OF GOODS AND SERVICES.
ANS:
(1) IT ENSURES THAT THE FIRM KEEPS FOCUSING ON CUSTOMERS AND AVOIDS BECOMING
PREOCCUPIED WITH GOODS, SERVICES, OR THE ORGANIZATION'S INTERNAL NEEDS. (2) IT
ENCOURAGES INNOVATION AND CREATIVITY BY REMINDING PEOPLE THERE ARE MANY
DIFFERENT WAYS TO SATISFY CUSTOMER WANTS. (3) IT STIMULATES AN AWARENESS OF
CHANGES IN CUSTOMER DESIRES AND PREFERENCES SO PRODUCT OFFERINGS ARE MORE LIKELY
TO REMAIN RELEVANT.
PTS: 1
REF: 13
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 01-3
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
15. THERE ARE SEVERAL IMPORTANT REASONS TO STUDY MARKETING. NAME THREE OF THESE
REASONS.
ANS:
1.
MARKETING PLAYS AN IMPORTANT ROLE IN
SOCIETY.
MARKETING IS IMPORTANT TO BUSINESSES.
MARKETING OFFERS OUTSTANDING CAREER
OPPORTUNITIES.
MARKETING AFFECTS YOUR LIFE EVERY DAY.
2.
3.
4.
PTS: 1
REF: 16
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 01-4
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
16. EXPLAIN HOW MARKETING IS IMPORTANT TO BUSINESS AND SOCIETY.
ANS:
MARKETING CONTRIBUTES DIRECTLY TO THE ACHIEVEMENT OF BUSINESS OBJECTIVES,
INCLUDING SURVIVAL, PROFITS, AND GROWTH. MARKETING IS CONCERNED WITH ASSESSING THE
WANTS AND SATISFACTIONS OF CUSTOMERS, DESIGNING AND MANAGING PRODUCT OFFERINGS,
DETERMINING PRICES, DEVELOPING DISTRIBUTION STRATEGIES, AND COMMUNICATING WITH
CUSTOMERS. MARKETING IS IMPORTANT TO SOCIETY BECAUSE IT EFFICIENTLY DISTRIBUTES THE
OUTPUT OF FARMS AND FACTORIES TO THE MILLIONS OF CONSUMERS WORLDWIDE. MARKETING
MAKES PRODUCTS AND SERVICES SAFELY AND CONVENIENTLY AVAILABLE WHEN BUYERS WANT
THEM, IN DESIRED QUANTITIES, AT ACCESSIBLE LOCATIONS.
PTS: 1
REF: 16
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 01-4
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
17. EXPLAIN THE CAREER OPPORTUNITIES OFFERED BY MARKETING.
ANS:
BETWEEN A FOURTH AND A THIRD OF THE ENTIRE CIVILIAN WORKFORCE IN THE UNITED STATES
PERFORMS MARKETING ACTIVITIES. MARKETING OFFERS OUTSTANDING CAREER OPPORTUNITIES
IN AREAS SUCH AS PROFESSIONAL SELLING, MARKETING RESEARCH, ADVERTISING, RETAIL
BUYING, DISTRIBUTION MANAGEMENT, PRODUCT MANAGEMENT, PRODUCT DEVELOPMENT, AND
WHOLESALING. MARKETING CAREER OPPORTUNITIES ALSO EXIST IN A VARIETY OF NONBUSINESS ORGANIZATIONS, SUCH AS HOSPITALS, MUSEUMS, AND UNIVERSITIES.
PTS: 1
REF: 16
OBJ: 01-4
TOP: AACSB
COMMUNICATION
KEY: CB&E MODEL STRATEGY
MSC: BLOOMS LEVEL V SYNTHESIS
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